India accounts for 2.75% of the global paper production and is among the top 12 in the world. Production of paper & paperboard stood at 11.0 million tonnes in 2011-12.
With the domestic demand on the rise, the paper industry in India is all set to grow further. Furthermore, the increasing population, literacy rate, growth in GDP, growth in the manufacturing sector and lifestyle of individuals will cause the revenues from the industry to reach USD 11.83 billion by 2017.
This report, Snapshot: Paper and Paper Board Industry in India, provides detailed analysis and focuses on market details, growth trends, major players, recent developments and key drivers of the industry. Inspite of the increased penetration of digital media, India’s paper industry has grown significantly.
Currently, as per the paper industry statistics, the Indian paper industry accounts for about 1.6% of the world’s total production of paper and paperboard. With turnover of more than USD 7 billion, the industry contributes about USD 0.6 billion to the exchequer of the country. This robust industry employs more than 0.37 million people directly and 1.3 million people in various associated industry. De-licensed from July 1997, the Government of India finally opened its gates for foreign investments. This initiative by the government saw the simultaneous existence of both old and modern paper mills in the country.
Most of these paper mills use a variety of material for the production, of paper which includes wood, bamboo, bagasse, wheat straw, rice husk and recycled fiber. With geographical location of these mills balancing both the local supply and demand, the current capacity of the industry stands at 12.75 million tons. This fiscal year, 2014-15, the paper and paper board industry is forecasted to produce 10.11 million tons.
Since India provides a prospective market landscape, the paper consumption is set to see an exponential growth and estimated to touch 13.95 million tons by 2015-16. This future growth prospect ensures growth in paper consumption and hence, an increase in consumption by 1kg per capita that would lead to an increase in demand of 1 million tons. Currently, the consumption has touched 11.15 million tons and per capita consumption is pegged at 9.3 kg.
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