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Turning the page on India's Paper Industry

A new chapter in investment potential and growth

The Indian paper industry is in the beginning stages of a major transformation, with key players investing in upgrading facilities and capturing market share. Though challenges and some barriers exist for entry, they may be overcome by investing in the right state and acquiring the right assets. Many policy changes being considered may ease the pain of doing business in India.

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Since the opening of its economy in the ’90s, India has become a frequent destination for multinational businesses. A significant increase in domestic demand, fueled by a burgeoning middle class, coupled with a growing workforce waiting to be added to the worldwide employment rolls, makes India a very attractive market to the global business community, including the pulp and paper industry.The upstream market demand for paper products, such as tissue paper, tea bags, filter paper, lightweight online coated paper, medical-grade coated paper, etc., is growing as well. These developments are expected to give a significant boost to the growth of the industry.

Turning the Page on India's Paper Industry

Meeting the growing demand will likely require a correspondingly significant investment in both new machines and upgrading of existing facilities. Currently, a small percentage of the demand is being met by imports due to the inability to produce certain segments profitably in India. India also allows 100 percent foreign direct investment (FDI) in this sector, making it an attractive landscape for foreign investment — one of the keys to growing the paper industry.The Indian paper industry is in the beginning stages of a major transformation, with key players investing in upgrading facilities and capturing market share. Though challenges and some barriers exist for entry, they may be overcome by investing in the right state and acquiring the right assets. Many policy changes being considered may ease the pain of doing business in India.

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