India Plastic Pipes Market was valued at INR474.47 billion
in 2023 and is expected to exhibit a 14.18% CAGR during the forecast period. The
Indian government is making substantial investments in infrastructure
development, leading to an increased demand for plastic pipes. These pipes are
extensively used in various infrastructure projects, including water supply,
sewerage, and gas distribution. India is actively focused on expanding its
infrastructure to achieve its 2025 economic growth target of INR5 trillion. Moreover,
under the Budget 2023-24, the capital investment outlay for infrastructure is
being raised by 33% to INR10 lakh crore (USD122 billion), which would account
for 3.3% of GDP and nearly three times the outlay in 2019-20. As the government
continues to prioritize this target, the India Plastic Pipes Market is
projected to experience a significant growth rate during the forecast period.
Plastic pipes, which are hollow cylinders made of
plastic, are primarily used to transport various substances such as liquids,
gases, slurries, powders, and small solids. They are also suitable for
structural applications, as hollow pipes offer higher stiffness per unit weight
compared to solid members.
The growth of India's infrastructure and
construction activities is driving the market expansion. Ongoing infrastructure
projects like roads, bridges, and buildings create substantial demand for
plastic pipes in applications such as water supply, drainage, and irrigation.
According to Piyush Goyal, the Union Minister of Commerce and Industry, India
is poised to become the third-largest construction market in the next two to
three years. During the Real Estate Developers Association of India (CREDAI)
National Investment Ceremony, Minister Goyal highlighted the crucial role played
by the real estate sector in India's growth story, generating significant
employment opportunities. He emphasized that the sector has demonstrated
remarkable resilience in recent years due to the government's active support.
Minister Goyal also emphasized the substantial business and job opportunities
presented by the real estate sector, with a significant focus on infrastructure
in the 2023 budget, including a Foreign Direct Investment (FDI) projection of
nearly INR 10 trillion (USD 120 billion). Consequently, the demand for plastic
pipes continues to grow, driven by the construction sector's high requirements.
The market players can explore attractive opportunities in various
infrastructure projects.
- In June 2022, the Minister of Road Transport and Highways
inaugurated 15 national highway projects valued at INR 13,585 million (USD 1.7
billion) in Patna and Hajipur, Bihar.
- In October 2021, an agreement was signed between
Dubai and the Government of India to develop infrastructure in Jammu and Kashmir,
encompassing industrial parks, IT towers, multipurpose towers, logistics
centers, medical colleges, and specialized hospitals.
- The Budget for 2023-2024 introduces an
infrastructure finance secretariat aimed at enhancing private investment opportunities
in infrastructure, including rail, road, urban infrastructure, and power, by
facilitating increased private investment from all stakeholders.
Government
Initiatives Towards Water Supply Helping the Market Growth
One of
the primary drivers for the demand of plastic pipes in water supply
applications is their excellent corrosion resistance. Unlike metal pipes,
plastic pipes exhibit high resistance to corrosion, ensuring the long-term
integrity of the water supply system. This corrosion resistance is particularly
crucial in India, where aggressive water conditions can cause deterioration and
compromise water quality in metal pipes. Plastic pipes also offer the advantage
of being lightweight and easy to handle, making them more convenient for
transportation and installation compared to heavier traditional materials like
concrete and metal. This characteristic proves beneficial in remote or
hard-to-reach areas, where ease of installation significantly reduces project costs
and time.
The
Indian government has undertaken significant investments in water supply
infrastructure, including dams, canals, and pipelines. Plastic pipes are
extensively used in various water supply applications such as water mains,
distribution pipes, and household connections. The rapid urbanization in India
has created a heightened need for modern and efficient plumbing and water
management systems, driving the demand for plastic pipes. Being one of the
world's most populous countries, India faces substantial challenges in meeting
the growing demand for clean and reliable water supply, especially in urban
areas experiencing rapid population growth. Plastic pipes have emerged as the
preferred choice for water supply systems due to their numerous advantages over
traditional materials.
Furthermore,
to ensure affordable, reliable, safe, and continuous (24 x 7) water supply to
the Guwahati metropolitan area, the Government of Assam, with funding from the
Government of India (JNNURM), has launched four major water supply projects.
These projects are being implemented by the Guwahati Metropolitan Development
Authority (GMDA) through Independent Project Management
Consultants/Implementation Units (PMC/PIU), with the responsibility of
operation and maintenance lying with the Guwahati Jal Board upon completion.
The government's ongoing focus on improving water supply and sanitation
infrastructure contributes significantly to the growth of the plastic pipes
market. Initiatives such as the Jal Jeevan Mission, which aims to provide piped
water supply to all households, create substantial demand for durable and
reliable piping solutions. As a result, the demand for water supply projects in
India is increasing, further driving the growth of the plastic pipes market. Plastic
pipes are well-known for their smooth interior surfaces, which minimize
friction and pressure loss, resulting in improved water flow efficiency. This
factor contributes to the market's growth with a high compound annual growth
rate (CAGR).
Increasing
investment in the Plastic Manufacturing Plants
India,
being a prominent hub of manufacturing plants, has witnessed remarkable growth
in the India Plastic Pipe Market. The establishment of new plastic
manufacturing plants is set to augment the supply of plastic pipes in the
country. This surge in supply will effectively cater to the escalating demand,
driven by the rapid infrastructure and construction activities, urbanization
trends, and increasing disposable income. Consequently, the enhanced availability
of plastic pipes is expected to result in reduced prices, making them more
accessible and affordable to a wider consumer base. Notably, several
manufacturing plants in India are experiencing substantial growth.:
- Reliance Industries is setting up a new plastic manufacturing plant
in Jamnagar, Gujarat. The plant is expected to be commissioned in 2024 and
will have a capacity of 1 million tons per annum.
- Additionally, Bhansali Engineering Polymers is setting up a new
plastic manufacturing plant in Surat, Gujarat. The plant is expected to be
commissioned in 2023 and will have a capacity of 100,000 tons per annum.
- Astral Poly Technik is setting up a new plastic manufacturing plant
in Dahej, Gujarat. The plant is expected to be authorized in 2023 and will
have a capacity of 25,000 tons per annum.
These are
just a few of the new plastic manufacturing plants that are being set up in
India. The plastic manufacturing industry in India is growing rapidly, and
these new plants will help to meet the growing demand for plastic products.