Paper imports in India have doubled over the past five years, reaching a record 2.05 million tonnes in FY25 compared to 1.08 million tonnes in FY21, according to the latest data released by the Department of Commerce, Government of India.
This surge in imports has emerged as a significant challenge for the domestic Paper Industry, undermining its growth potential and threatening investments in capacity expansion. The Indian Paper Manufacturers Association (IPMA) has expressed deep concern over the continued rise in paper and paperboard imports, which in FY25 alone saw a 33% jump in volumes from China.
Imports from China now account for over a quarter of the total paper imports into India. In value terms, imports of paper and paperboard touched nearly INR 15,000 crore in FY25. Mr Pawan Agarwal, President IPMA, stated, “The relentless surge in paper imports is a matter of grave concern for the domestic Paper Industry, which has invested substantially in capacity building and sustainability initiatives.
The influx of cheap imports, especially from countries like China, has been eroding the competitiveness of the domestic manufacturers, leading to underutilization of installed capacities.” “Apart from the overall negative impact of indiscriminate imports on the domestic paper industry, it is making most small and medium paper mills in India commercially unviable. According to the Department for Promotion of Industry and Internal Trade (DPIIT), out of over 900 paper mills in the country, currently only 553 are operational.
This is a serious setback to the sector, which has traditionally supported a large number of rural and small-scale livelihoods” added Mr. Pawan Agarwal. In the 14-year period since FY11, paper and paperboard imports into India have grown at a CAGR of over 10%—one of the steepest increases among major commodities.
Such a high growth in imports not only jeopardizes the domestic industry but also impacts employment generation, rural livelihoods linked to the paper value chain, and the overall circular economy of paper recycling. IPMA has been consistently highlighting the structural imbalances caused by the surge in imports. IPMA has called upon the government to take urgent policy interventions to safeguard the domestic paper industry.
“We urge the government to implement stricter quality control measures, review trade agreements that lead to duty-free or low-duty access for paper imports, and ensure a level playing field for the Indian Paper Industry”. “The domestic paper industry, which has a robust manufacturing base and significant backward integration with the farm sector, plays a vital role in India’s circular economy and sustainability goals.
However, the unprecedented rise in imports threatens to derail this progress”, said Mr. Rohit Pandit, Secretary General IPMA. IPMA has reiterated its commitment to engage with the government and stakeholders to find a balanced approach that protects the domestic industry while meeting the growing demand for paper in the country.