Paper Industry in India — Growth Drivers
India’s paper industry is expected to grow at about 7 percent in the coming years owing to the increased usage of different kinds of paper. Even though India has 15 percent of world’s population, we consume less than 2 percent of the world’s paper. These numbers are set to change with an increased market demand for upstream paper products like tissue papers, paper bags, coated paper etc. Owing to the increased demand, the paper manufacturers and paper suppliers would be needed to invest more on the equipment and facilities.
There are several other important factors favouring investment in the industry. The first reason would be the advancement of the education sector. India’s literacy rate is on the rise with increased awareness and government focus on education. The expenditure on notebooks and textbooks has increased, providing an opportunity to the paper companies. The increased literacy rate also implies an increase in the readership of newspapers and magazines.
Another major factor would be the changes in the corporate lifestyle in India. With the opening of the economy, more number of corporations have set up their offices in India. Increase in the employees has many effects, one of them being the increased usage of paper and packaging. The lifestyle changes have generated the demand for upstream paper goods like tissue papers, paper bags etc.
A varied option is available for the paper manufacturers to innovate. The printing industry is growing at an annual compound rate of 16 percent. It is the second largest print market in the world, with a readership base of over 250 million. The printing industry has been one of the foremost customers of the paper suppliers and the relationship is bound to be stronger with the advancement in both industries.
The Indian paper industry is in the fundamental stages of a great revolution and growth, with foreign players collaborating with the Indian paper manufacturers and suppliers leading to higher investments for the improved facilities and latest equipment. It has a potential to generate employment to many people. In conclusion, it can be stated that the paper industry is changing for the good of the paper manufacturers, suppliers and everyone involved with the industry adding to the growth of the country’s economy.