National bioplastic policy with fiscal incentives needed: EY-Assocham report

To offer capital subsidies of up to 50 per cent in bioplastic sector on eligible investments over a five-year period is one of the key recommendations made through a recent report by EY and ASSOCHAM titled "Incentivising Bioplastics, a Biopolymer".

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The report recommends fiscal incentives, regulatory changes, and government-backed support for research and development to promote the growth of this environmentally sustainable industry.

It aligns with India's broader goals under the BioE3 policy, which seeks to promote bio-manufacturing, create a circular economy, and achieve net-zero carbon emissions.

This financial support is essential to help offset the high initial production costs and make bioplastics more economically viable.

The report also suggests reducing GST rates on bioplastic products to 12 per cent, further encouraging businesses to invest in the sector.