India is the fastest growing market globally for paper and it presents an exciting and promising scenario. The paper consumption is ready for a big jump forward in sync with the economic growth and is estimated to touch 13.95 million tons by 2015-16.
The Indian Paper Industry accounts for about 2.6% of the world’s paper production. According to the Indian Papers Manufacturers Association (IPMA), the industry provides employment to more than 0.5 million people directly and 1.5 million people indirectly. Most of the paper mills have been in existence for a long time and hence, the current technologies fall in a wide spectrum ranging from oldest to the most modern. The mills use a variety of raw material viz. wood, bamboo, recycled fiber, bagasse, wheat straw, rice husk, etc.; approximately 31% are based on chemical pulp, 47% on recycled fiber and 22% on agro-residues. In a village near Jaipur, Rajasthan is the world’s largest centre of handmade paper. The handmade paper industry in India offers considerable potential to meet the increasing demand for paper products in an environmentally friendly way. Delhi is an ideal location to find both of these materials because it has a thriving rag trade, which provides abundance of old cloth and vast amounts of used paper. The geographical spread of the industry and the market are primarily responsible for regional balance of production and consumption. The Indian government has provided funds to different handmade paper supplying councils like the Khadi & Village Industries Commission (KVIC) which have strategic tie ups with various banks which then provide funds to promising entrepreneurs to start their own handmade paper making business.
The Indian Printing Industry, growing at an annual rate of 12%, comprises of more than 250,000 big, small and medium printing companies. The estimated turnover of the industry is USD 11 billion. There has been a revolutionary change in the last 15 years in the printing industry in India. Privatization of the industry was initiated with the aim of integrating the Indian economy with the world economy. This change opened doors for the Indian Printing Industry to modernize and attracted investment in the latest technology and machinery. The advent of global brands, rising consumerism and growth of the pharmaceutical industry have contributed to an increase in packaged printing also. Giving an optimistic outlook of the industry, the packaged printing industry is growing at an annual rate of 17%, commercial printing at an annual rate of 10-12% and digital printing at a robust growth rate of 30%.
According to the Association for Suppliers of Printing, Publishing and Converting Technologies (NPES), the size of the Indian Printing Industry is estimated at USD 29.3 billion in 2017 up from USD 24.3 billion in 2014. However, the impeding growth of the Indian Printing Industry can be held accountable for by the global financial crisis, but the total print products industry will continue to grow at an annual rate of 6.8% over the year 2017.
The two sectors of the Indian Printing Industry which are projected to grow the most in India are Packaged Printing and Published Printing. Packaged printing will grow more rapidly at a rate of 7.8% in 2017. The market size of the packaged printing sector will increase from USD 10.2 billion in 2014 to USD 12.7 billion in 2017, and will comprise of 43% of the total print product sales in 2017. The growth of packaged printing will be driven by an increasing demand for non-commodity consumer goods in developed countries in the Asia-Pacific region that are slowly shifting from producer countries to consumer countries(especially China).
Published Printing’s market size will grow from USD 3.9 billion in 2014 to USD 4.5 billion in 2017. This growth is primarily due to increase in population, higher rate of literacy and a growing economy. Countries like UK, USA and Japan outsource printing jobs to India because of the low cost of labor, English language proficiency, design capabilities, talent pool, technology and communication costs. India’s geographical location adds to its advantage in order to do business with the east or the west.
To conclude, the Indian Paper and Printing Industry has huge potentials and prospects in the coming future. The Government of India has acknowledged the Paper Industry as one of the 35 listed as high priority Industries. The demand for paper and newspaper is rapidly increasing. Indian Paper Industry is slightly underestimated since India’s per capita paper consumption is approx.5 kg whereas it is 337 kg in North America, 110 kg in Europe and 30 kg in China. Hence, if compared, India’s per capita paper consumption is one of the lowest in the World with a big potential regarding exports.
To read the latest news on the Paper & Print Industry in India click Paper & Print Newsletter