Do numbers really matter to Indian print business?

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Do numbers really matter to Indian print business? It’s not clear whether the Indian GDP growth rate actually influences its print industry’s buying decisions more than local demand and competition. Although our job is to put forward reasonable explanations and justifications for modernization, professionalism and the adoption of new technology, we realize that a great deal of equipment and consumable purchasing is more emotional than rational. The best printers are really those who could make anything work (or get the best out of what they have at any point) and those who have, over time, rationally distilled their experience to find the balance between better technology, automation, ease of use and return on investment.

We do think that numbers matter – both in a general and particular way and in the case of every Indian print business. We know that if the Indian GDP really grows at only 5-6%, the print industry at least in our country cannot grow meaningfully. At that rate it cannot expand because the demand for books, newspapers and magazines and packaging is stagnant or grows nominally (incrementally in volume) and not in real value growth. According to a recent article by a former finance minister, “Growth slowed down rapidly in 2018-19. In the four quarters, it was 8.0, 7.0, 6.6, and 5.8%. It will probably decline further in April-June 2019. Anticipating a downtrend, RBI has lowered the forecast for 2019-20 to 7.2%.”

GDP growth is driven by investment (not merely consumption) and gross fixed capital formation was 29.3% (at current prices) in the past year. Promoters are reluctant to invest because capacity utilization in manufacturing was only 76% in the past year. In my February editorial in these pages, I wrote: “The publishing and print industries are not showing exceptional or even real growth. Our experience in researching these industries for the past 20 years (in IppStar) shows that high growth only occurs when the GDP growth is far above 6%. In the past three or four years this does not seem to be the case, no matter what kind of numbers the government cooks up and claims.” Unfortunately, our industry, the Indian print business, is an accurate barometer of the country’s economy and we need to keep learning how to read its trends and the relevant economic signs. And to keep speaking out.

Slightly edited version of an editorial that appeared in the July 2019 edition of Indian Printer and Publisher – Editor 22 July 2019

In 2024, we are looking at full recovery and growth-led investment in Indian printing

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. It created the category of privately owned B2B print magazines in the country. And by its diversification in packaging, (Packaging South Asia), food processing and packaging (IndiFoodBev) and health and medical supply chain and packaging (HealthTekPak), and its community activities in training, research, and conferences (Ipp Services, Training and Research) the organization continues to create platforms that demonstrate the need for quality information, data, technology insights and events.

India is a large and tough terrain and while its book publishing and commercial printing industry have recovered and are increasingly embracing digital print, the Indian newspaper industry continues to recover its credibility and circulation. The signage industry is also recovering and new technologies and audiences such as digital 3D additive printing, digital textiles, and industrial printing are coming onto our pages. Diversification is a fact of life for our readers and like them, we will also have to adapt with agility to keep up with their business and technical information needs.

India is one of the fastest growing economies in nominal and real terms – in a region poised for the highest change in year to year expenditure in printing equipment and consumables. Our 2024 media kit is ready, and it is the right time to take stock – to emphasize your visibility and relevance to your customers and turn potential markets into conversations.

– Naresh Khanna

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