Presidents Desk

Dear Members,

Greetings from Organization of Plastics Processors of India!

The Trump Administration has imposed a reciprocal tariff of 25% on certain import goods from India starting August 7th, 2025. In addition, an ad valorem duty of 25% has also been imposed with effect from August 27th, 2025.

The United States was a primary market for Indian Plastic Exports during the period – April 2024 to March 2025.

The US accounted for the largest share of India’s plastic exports in FY 2022-23 (the latest year for which specific destination data is cited) totaling US$ 2.31 billion, representing 19.37% of the total exports. While this is a decrease from the previous year, the US continues to be a crucial destination.

Overall, the period of April 2024 to March 2025 witnessed a significant increase in India’s overall plastic exports, driven by growth in various product segments and continued demand from major international markets like the USA.

OPPI has represented to Shri. Piyush Goyal, Minister for Commerce and Industry regarding the adverse impact of tariffs imposed by the USA. On the 79th Independence Day, Hon’ble Prime Minister Shri Narendra Modi emphasized GST as an important reform. He called for new GST reforms, some of which are listed below Three Pillars of GST Reforms 2025:

Pillar 1: Structural Reforms:

• Inverted duty structure correction
• Resolving classification issues
• Stability & predictability

Pillar 2: Rate Rationalization:

• Lower taxes on essentials &aspirational goods:
• Reduction of GST slabs
• Compensation Cess

Pillar 3: Ease of Living:

• Registration: Smooth, tech-based, and time-bound, especially for MSMEs and startups.
• Return: Pre-filled GST returns to cut manual work and mismatches.
• Refund: Quicker, automated GST refunds for exporters and inverted duty cases.

The simplification of India’s goods and services tax (GST) structure took a significant step forward with the group of ministers (GoM) on rate rationalisation unanimously accepting the Centre’s proposal to move to a two slab structure of 5% and 18% with a special 40% levy for sin goods, paving the way for next-generation reforms in the country’s eight-year-old indirect tax regime. The GST council, the apex decision-making body for the tax, could meet in the first week of September instead of the second half as planned earlier, to ensure early implementation of the reform in time for Diwali.

With Best Wishes,
Pradeep Rathod
President, OPPI