Strategic Vision to Position India as a Bioplastics Leader

A new report by EY and ASSOCHAM titled “Incentivising Bioplastics, a Biopolymer” outlines a comprehensive strategy to transform India into a global hub for bioplastics production. The report emphasizes the urgent need for a National Bioplastics Policy to catalyze growth in this promising sector.

National Bioplastics Policy: A Game-Changer for India

The report advocates for the development of a National Bioplastics Policy to solidify India’s position in the bioplastics industry. Such a policy would address the need for fiscal incentives, a supportive regulatory framework, and robust infrastructure. By setting clear guidelines and providing capital subsidies of up to 50% on eligible investments, the policy aims to enhance India’s domestic production capabilities and environmental sustainability.

Fiscal Incentives and Support for Growth

To stimulate the bioplastics sector, the report recommends significant fiscal measures, including capital subsidies, interest subvention, and SGST reimbursement. It suggests setting GST rates on bioplastics at 12% and proposes a sector-specific scheme offering additional benefits. These measures are designed to mitigate initial costs and encourage widespread adoption of bioplastics.

Building Bioplastics Clusters: Fostering Innovation and Infrastructure

Establishing bioplastics clusters is another key recommendation. These clusters would focus on advancing research and development, supporting academic-industry partnerships, and fostering innovation in bioplastic technologies. By investing in key infrastructure and job creation, these clusters aim to integrate bioplastics into India’s environmental and economic strategies, promoting a circular economy.

Regulatory Framework: Ensuring Effective Implementation

The report stresses the importance of a phased approach to incorporating bioplastics into India’s Plastic Pact. It suggests implementing sector-specific restrictions on single-use plastics, mandating the use of bioplastics, and amending existing regulations to support industry growth. Quality Control Orders (QCO) and import quotas are recommended to protect and promote the domestic bioplastics industry.

Public Awareness and Education: Driving Community Engagement

Raising awareness about bioplastics is crucial. The report calls for educational campaigns and funding under the Swachh Bharat Mission to promote bioplastics and support composting initiatives. Enhancing public understanding and engagement will be vital for driving the adoption of bioplastics and achieving sustainability goals.

The EY-ASSOCHAM report outlines a strategic roadmap for India to become a leader in the bioplastics industry. By implementing a comprehensive National Bioplastics Policy, providing fiscal incentives, and fostering innovation, India can address environmental challenges and advance towards a more sustainable future.