India’s plastics exports were flat as product mix shifted in FY26

India’s plastics exports were broadly flat in FY26, falling 0.3% to US$12,468.7 million from US$12,501.0 million in FY25. The annual result reflected a changed product mix: miscellaneous plastic products rose 31.7% and FIBC, woven sacks, woven fabrics and tarpaulin increased 12.7%, while raw materials and films and sheets declined.

Why were plastics exports flat in FY26?

Plastics exports were flat because growth in several categories offset contractions in two of the largest categories. Exports totalled US$12,468.7 million in FY26, compared with US$12,501.0 million in FY25, a decline of US$32.3 million. The FY26 total nevertheless remained above FY24 exports of US$11.54 billion, although it did not reach the US$13.30 billion recorded in FY22.

The final month of FY26 was weaker than the full-year result. Plastics exports were US$992.1 million in March 2026, compared with US$1,159.7 million in March 2025, a year-on-year decline of US$167.6 million. This monthly comparison shows that the near-stable annual total did not mean exports held at the same level through March 2026.

The longer series shows that plastics exports rose from US$5.8 billion in FY17 to US$12.46 billion in FY26, more than doubling over nine financial years. However, FY26 was US$0.84 billion below the FY22 level, based on the reported annual series. Continued growth would therefore depend on expanding categories adding enough export value to offset weakness in raw materials and films.

How did the product mix shift in FY26?

The product mix shifted towards categories that recorded growth while raw materials and films contracted. Miscellaneous plastic products posted the fastest cited expansion, rising 31.7% in FY26. Human hair and related products increased 19.1%, FIBC, woven sacks, woven fabrics and tarpaulin grew 12.7%, and consumer and houseware products rose 10.4%.

The growing categories were material contributors to the export basket. FIBC, or flexible intermediate bulk containers, together with woven sacks, woven fabrics and tarpaulin, generated US$1,772.4 million in FY26. Human hair and related products contributed US$942.8 million, miscellaneous plastic products US$903.4 million, and consumer and houseware products US$872.6 million.

The offset was incomplete because the largest categories reported declines. Plastic raw materials, the largest category at US$2,894.9 million, declined 9.8% in FY26. Plastic films and sheets, the second-largest category at US$1,888.2 million, fell 6.9%; floor coverings, leathercloth and laminates declined 12.2%, writing instruments and stationery fell 11.9%, and cordage, fishnets and monofilaments declined 9.0%.

The relative sizes help explain the near-flat total. Raw materials and films and sheets had combined stated FY26 exports of US$4,783.1 million, compared with US$3,518.4 million across the four growing categories for which values were disclosed. Higher growth rates in the latter categories supported the total, but the larger base of raw materials and films meant their declines remained consequential.

How concentrated was the FY26 plastics export basket?

The FY26 plastics export basket was diversified, but its three leading groups accounted for more than half of April-February exports. Raw materials represented 23.57% of plastics exports, films and sheets represented 15.01%, and FIBC, woven sacks, woven fabrics and tarpaulin represented 14.28%. Together, those three groups accounted for 52.86% of exports during April-February FY26.

The remaining 47.14% was distributed across other groups. Others represented 27.24% of April-February FY26 exports, followed by human hair and related products at 7.39%, consumer and houseware products at 6.99%, and flexible and rigid packaging items at 5.52%. These shares cover April-February FY26, while the US$12,468.7 million export total covers the full FY26 period, so they are not the same measurement period.

The composition indicates why declines in raw materials and films affected the annual outcome. Their combined 38.58% April-February share meant that reductions in these two groups came from a significant portion of the export basket. Miscellaneous plastic products grew 31.7%, but their disclosed FY26 value of US$903.4 million was below raw materials' US$2,894.9 million.

Which export markets and policies affect plastics exports?

The United States was the largest destination for plastics exports in FY25, accounting for 19.99% of the US$12,500.69 million total. China ranked second with 6.12%, followed by the United Arab Emirates at 4.99%, the United Kingdom at 4.07%, Germany at 3.47%, and Nepal at 2.57%. The US share means that about one-fifth of FY25 plastics export value was sold to one market.

The destination profile also extended beyond the leading markets. Italy represented 2.17% of FY25 plastics exports, the Netherlands 2.06%, Vietnam 1.96%, Spain 1.88%, and France 1.87%. The country-share table assigns 58.8% to other destinations, while the sector supplies products to more than 200 countries.

The Plastics Export Promotion Council, or PLEXCONCIL, has set a target of US$25 billion of plastics exports by 2027, compared with US$12,468.7 million in FY26. PLEXCONCIL, established in 1955 under the Ministry of Commerce & Industry, represents more than 2,500 exporters across raw materials, semi-finished goods and finished products. The target is a disclosed objective rather than an achieved export forecast.

Government support for plastic parks is intended to support manufacturing output. Under the plastic park scheme, the Government of India may provide funds of up to 50% of project cost, subject to a ceiling of Rs 40 crore per project. The source states that multiple plastic parks are being set up in phases, making implementation of those projects a relevant factor for future capacity.

Conclusion

The FY26 outcome shows that plastics exports were stable in aggregate but changed beneath the headline figure. The 0.3% decline to US$12,468.7 million reflected gains in miscellaneous products, human hair and related products, woven products, and consumer goods against lower exports of raw materials and films. Because raw materials, films and woven products accounted for 52.86% of April-February FY26 exports, movements in the largest categories continue to shape the total.

The next measure to watch is whether the growing categories can raise overall exports while raw materials and films stabilise. PLEXCONCIL’s stated US$25 billion target for 2027, and phased plastic parks supported by funding of up to Rs 40 crore per project, provide disclosed plans against which future export and capacity progress can be assessed. The United States' 19.99% share of FY25 exports also leaves that market important to the sector's export performance.