The Expanding Paper Industry in India

One of India’s most significant industries, the paper industry has grown tremendously over the past few decades. The increasing domestic and Global demand for paper products has propelled the industry forward. The annual turnover of the Indian paper industry is estimated to be around Rs. 70,000 crores, and it is anticipated to increase even further in the coming years.

In this article, we explore the colossal potential of the domestic pulp and paper market, India’s potential to become a major paper exporter, and the factors that make India an ideal spot for a booming paper industry.

1. Domestic consumption

The paper and pulp sector in India has grown drastically in recent years. This is primarily due to India’s growing domestic demand for paper and pulp products. Demand for paper and pulp products has increased in the country as a result of a rise in the number of schools and colleges, an increase in the use of computers, an increase in the demand for packaging materials, rapid population growth, rising disposable incomes, growing urbanization, and shifting lifestyles.

The paper industry’s domestic market is growing at a consistent rate and is projected to reach $19.5 billion by 2025. The industry consists of a large number of small and medium-sized companies.

In India, the paper industry is one of the most important employment-generating industries. Approximately 1.5 million direct jobs and 5 million indirect jobs have been created. Additionally, the industry is a significant contributor to the national economy.

2. Export potential

India is well-positioned to become the world’s leading exporter of paper. It is one of the world’s leading manufacturers of paper and the second largest manufacturer of newsprint. India is already one of the world’s largest exporters of paper, accounting for 4.5% of global exports of paper and paper products. The vast natural resources, rapidly expanding economy, and sizeable population of India all contribute to the country’s potential to become a major exporter of paper.

The fact that India’s paper exports increased by a massive 80% in the fiscal year 2021-22, from barely 3,000 crores to more than 13,000 crores in a year, demonstrates the strength of Indian paper manufacturers.

India’s paper exports are driven in large part by its robust manufacturing sector. There are numerous pulp and paper mills in India, with a combined capacity of over 20 million tonnes. As the industry continues to modernize, this capacity is projected to increase over the next few years. In recent years, domestic paper companies have also increased their global marketing efforts and invested in the development of foreign markets. In addition, India is home to a multitude of paper mills that produce a vast array of paper products. This enables the industry to meet the needs of the international market.

The top export destinations for Indian manufactured paper are the UAE, China, Saudi Arabia, Bangladesh, Vietnam, and Sri Lanka.

3. Indian paper industry’s advantages

A major factor in the continuing expansion of the industry is government policy. Here are some of the major policy initiatives taken by the government of India in this regard:

Firstly, the government has enacted several cost-cutting measures for the paper industry. It has reduced import duties on industry’s raw materials and machinery. Due to lower production costs, paper manufacturers can now compete globally. GST exemptions, accelerated depreciation, and credit linked capital subsidies are also available to the paper industry. These incentives lower production costs, making the paper industry more competitive.

Secondly, the government has taken steps to encourage innovation and modernization in the industry. It has set up various research and development centers to help promote technological advancements in the industry. These include

  • setting up of dedicated paper parks,
  • introduction of the Paper and Paper Board Development Council,
  • development of special-purpose industrial parks, and
  • upgradation of existing infrastructure.

Thirdly, the government enhanced financing options for the paper industry. Through the Credit Linked Capital Subsidy Scheme, the government provides interest subsidies to small and medium-sized paper companies (CLCSS). These initiatives have increased capital availability, allowing paper manufacturers to upgrade equipment and expand easily.

Furthermore, India’s vast natural resources provide a significant advantage in paper production and export. India has vast forests that can provide wood and other raw materials for paper production.

There are several rivers in India that can be used to ship paper products all over the nation. This, combined with India’s numerous ports, makes it simple to export paper products to other countries.


In light of the domestic growth, export potential, and friendly government policies coupled with India’s rich natural resources – India’s pulp and paper industry is set to experience tremendous growth in the near future and Coniferous is on the brink of this massive growth trend to bring you the latest and greatest, this industry has to offer.

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