JAIPUR, India — India’s paper industry continues to grow despite the ongoing shift toward digital media and declining demand for traditional printing papers, with packaging emerging as the sector’s primary growth engine.

Industry leaders say rising demand from e-commerce, food packaging and consumer goods is helping offset weaker consumption of printing and writing papers, although manufacturers continue to face challenges related to raw material security and aging production infrastructure.

Packaging Drives Industry Growth

According to industry representatives, increasing demand for packaging materials has become the main factor supporting India’s expanding paper sector.

Growth in online retail, food delivery, fast-moving consumer goods (FMCG) and organized retail has significantly increased the need for paper-based packaging, compensating for lower demand caused by digitalization and declining newspaper circulation.

While printing and writing paper consumption has softened, industry experts noted that education and packaging remain long-term growth segments.

Fibre Supply Remains a Key Challenge

Speaking ahead of the Indian Pulp and Paper Technical Association (IPPTA) zonal conference in Jaipur, IPPTA President S.V.R. Krishnan said securing a stable fibre supply remains one of the industry’s biggest challenges.

India currently has an annual paper production capacity of approximately 30 million tonnes, making it one of the world’s largest paper producers within a global market estimated at 450 million tonnes annually.

However, around 50% of the fibre used by Indian paper mills is imported, exposing manufacturers to higher raw material costs and supply chain volatility.

Krishnan said increasing fibre security will be critical to maintaining the industry’s long-term competitiveness.

Modernization Needed to Improve Efficiency

In addition to raw material concerns, many Indian paper mills continue to operate older production equipment.

Krishnan noted that modernizing manufacturing facilities will be essential to improve operational efficiency, lower production costs and strengthen the industry’s competitiveness in both domestic and international markets.

Higher fibre prices and imported raw materials continue to put pressure on production costs across the sector.

Education and Packaging Offer Long-Term Opportunities

Despite digital transformation reducing demand for some traditional paper grades, industry representatives remain optimistic about future growth.

Krishnan said continued expansion of India’s education sector, together with sustained growth in packaging demand, provides a solid foundation for the industry’s long-term development.

These topics are expected to be among the key discussions during the two-day IPPTA zonal conference in Jaipur, where paper manufacturers, suppliers and industry experts from across India are gathering to discuss technology, sustainability and future investment priorities.

Last Updated on 10/07/2026 by Jota Machinery