The Indian Paper and Pulp industry is very much at a crossroads. According to McKinsey & Co. CEO Bob Sternfels, India will be the world’s future talent factory because by 2047 – 20% of the world’s employable population will be in India. A large working population, multinational corporations reimagining global supply chains, and a nation leapfrogging at a digital scale are all necessary ingredients for India to achieve something special not just for the Indian economy but potentially for the entire world. According to the firm, this will not just be India’s decade but also India’s century.
On the possibility of a global recession, he said that It is simple to list issues such as inflation and the widening socioeconomic gap that exists in almost every nation on earth, and the growing labor shortage. However, a few things set this era apart from others. It’s difficult to have a recession if there is no structural unemployment, Tom Barkin, the president of the Richmond Fed and a former McKinsey employee, reminded me.
In the US and the majority of Western Europe, structural unemployment is nonexistent. As a result, your unemployment rate is extremely low. The global financial crisis and the dot-com bust, the two most recent periods of disruption, may not have been like that.
Additionally, some of those inflationary signs have begun to taper off. Oil costs have begun to decline below $100 per barrel. A significant increase in secondary sales in the US and Europe is also being observed in some supply chains. Therefore, as supply chains catch up, products that previously went through primary channels are now going through discount channels. There are conflicting signals, in my opinion.
It has been proclaimed that this is India’s decade. In fact, I believe this is India’s century. India will be the world’s future talent factory. 20% of the world’s workforce would be in India by 2047. Additionally, it has enormous potential for India in all facets of manufacturing as supply chains are being reimagined. Digitalization is the third. On a digital scale, India has advanced. All those things are the raw materials to create something special for the Indian economy and perhaps the global economy as a whole.
The Booming Indian Paper and Pulp Industry
The Indian Paper and Pulp industry is anticipated to expand in tandem with economic expansion, averaging 6-8% annual growth. According to A S Mehta, President of the Indian Paper Manufacturers Association, “Paper industry in India is exhibiting one of the fastest growths being witnessed anywhere in the world and is most likely to continue this growth trajectory in the years to come as Indian economy is better placed to weather the storm caused by global upheavals” (IPMA).
According to industry group IPMA, the emphasis on education and literacy along with the expansion of organized retail will largely drive India’s paper consumption, which is expected to grow by 6 to 7 percent annually and reach 30 million tonnes by FY 2026–27.
According to a statement from the Indian Paper Manufacturers Association (IPMA), India has one of the lowest per capita consumption rates in the world, which presents enormous growth potential for the Indian paper and pulp industry.
Approximately 15% of the world’s population resides in India, but only 5% of the paper produced globally is consumed there, according to the statement. The main forces behind the growth are the emphasis on literacy and education, the expansion of organized retail, and the demand for better-quality paper.
“Paper and Pulp Industry in India has undergone a transformation of sorts in the last few years. The industry has gone up the sustainability curve and has become far more technologically advanced. In the last five to seven years, an amount of over Rs 25,000 crore has been invested in new efficient capacities and induction of clean and green technologies,” said IPMA President A S Mehta.
Over the past ten years, the paper and pulp industry in India along with the paperboard packaging industry has expanded as a result of changes in substrate preferences, the opening of new markets, shifting ownership dynamics, and government efforts to outlaw plastic. The emphasis on sustainability and environmental issues continues, and a number of innovations geared toward paper and paper board packaging are anticipated to fuel market expansion in India.
Due to the COVID-19 pandemic, the packaging industry experienced some significant problems, such as the effects of the nationwide lockdown, businesses shifting their sourcing away from China, and reevaluating the materials used in packaging. Although the demand for some applications of paper and paperboard packaging solutions, such as corrugated boxes, folding cartons, and others, dramatically increased, the supply side of the paper packaging industry still saw a significant impact.
However, the industry has already overcome its pandemic problems. The demand for paper packaging is anticipated to rise as organized retail expands significantly due to the quick growth of supermarkets and contemporary shopping malls. A list of actions to be taken to outlaw specific single-use plastic products by June 2022 was also published by the Central Pollution Control Board (CPCB), a federal organization under the Ministry of the Environment. The demand for paper packaging in the nation is anticipated to increase as a result of these actions.
The growth of the Indian Paper and Pulp industry is inherently linked with India’s overall economic growth and India’s overall growth prospects seem very promising over the course of this century. Additionally, India has one of the lowest per capita consumption of paper – an indicator of tremendous potential. With an ever-expanding need for paper in sectors such as Education, F&B, and Healthcare, the Indian Paper and Pulp industry is getting ready for an enormous boom.
This optimistic upturn towards a brighter side for the industry remains a hope and a pleasant challenge for all. Looking to know more about the evolution and perseverance of the industry through the ups and downs? Follow Coniferous for a complete joyride to the sustainable side of the world.