close_game
close_game

Revolutionising India’s packaging industry

Jan 31, 2025 06:43 PM IST

This article is authored by Jeevaraj Pillai, director, sustainability, president, Flexible Packaging and New Product Development, UFlex Limited.

The Indian packaging industry plays a crucial role in meeting the growing demands of key sectors such as FMCG, food and food processing, consumer care, chemicals and fertilisers and pharmaceuticals, among others, by ensuring safety, quality, and efficiency, while adopting innovative solutions for environmental sustainability. With rapid technological advancements and increasing consumer awareness around sustainable products, the packaging sector in India is poised for remarkable growth. According to industry estimates, the Indian flexible packaging market is expected to experience substantial growth, with the market anticipated to surge by $15.6 billion over the next five years, growing at a compound annual growth rate (CAGR) of 12.7% from 2024 to 2028.

Climate crisis(AFP) PREMIUM
Climate crisis(AFP)

The packaging sector’s robust growth trajectory is fuelled by shifting consumer preferences, increased demand for packaged goods, and a growing focus on sustainability. However, as the demand for packaging solutions rises, the industry must also address the need for environmentally friendly practices and solutions.

One of the key drivers of this transformation is the increasing awareness among businesses and consumers about the environmental impact of packaging waste. Over the past few years, the government has intensified its efforts to promote sustainable business practices through initiatives like the updated Plastic Waste Management (PWM) regulations and Extended Producer Responsibility (EPR) Rules 2024, which are set to roll out in 2026. These policies position the packaging industry as a major focal point for environmental reform.

The Union Budget presents an opportunity for the government to fast-track the shift towards a more sustainable packaging sector. Key measures could include tax incentives for using eco-friendly materials like biodegradable plastics, plant-based packaging, or recycled content. Subsidies for advanced recycling units would further support waste reduction and promote a circular economy.

Promoting investment in recycling infrastructure is essential for creating a circular economy around packaging materials. The government could enable businesses to contribute through corporate social responsibility (CSR) provisions and interest subvention for loans to set up recycling facilities. Fund allocation for the sensitisation of solid waste management rules can infuse segregation practices, reducing littering and landfilling. Enhanced budgetary allocation for Urban Local Bodies (ULBs) to invest in Municipal Solid Waste (MSW) segregation plants could also provide the necessary infrastructure for large-scale waste recycling, helping to divert packaging waste from landfills and creating valuable feedstock for recycling plants.

To accelerate sustainable practices, the government should provide infrastructure support for recycling clusters and export incentives for sustainable packaging solutions which would help drive economic growth while addressing environmental concerns. These clusters could serve as hubs for collecting, sorting, and processing packaging waste, significantly improving recycling efficiency. A dedicated focus on these areas in the upcoming budget can align the industry with India’s broader sustainability goals and ESG commitments.

The government’s focus on renewable energy and energy-efficient manufacturing should extend to the packaging sector. Encouraging clean energy use in packaging manufacturing can significantly reduce the industry’s carbon footprint. Production-linked incentives (PLI) for green technologies and sustainable practices—an extension to the food processing segment already under PLI—would provide an additional push for manufacturers to innovate.

Funding for research and development (R&D) in sustainable packaging technologies is another crucial step. Imagine revolutionary biodegradable packaging materials, plant-based alternatives, and advanced recycling technologies that position India as a global leader in sustainable manufacturing practices. Incentives to adopt these materials could accelerate their widespread use, further reducing the environmental impact of packaging production.

India’s packaging industry is at a pivotal juncture. With the right policies, incentives, and investments, the sector can transition to sustainable practices, driving growth while reducing its environmental impact. The Budget is a unique opportunity for bold action. By prioritizing sustainability in packaging, India can not only meet its environmental goals but also solidify its position as a global leader in green innovation. The choices made today will determine the industry's role in shaping a sustainable and prosperous future for businesses, consumers, and the planet alike.

This article is authored by Jeevaraj Pillai, director, sustainability, president, Flexible Packaging and New Product Development, UFlex Limited.

rec-icon Recommended Topics
Share this article
See More

For evolved readers seeking more than just news

Subscribe now to unlock this article and access exclusive content to stay ahead
E-paper | Expert Analysis & Opinion | Geopolitics | Sports | Games
SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Saturday, February 08, 2025
Start 14 Days Free Trial Subscribe Now
Follow Us On