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.