It is no secret that the printing industry is one of the most vibrant in the country, although it is fragmented and has many small and medium players, and a few that are large. By large commercial print businesses, I mean those with turnovers greater than Rs 500 crore (US$ 60 million).
Nevertheless, a few of our substantial book printers and book print exporters have reached the large category – at least a couple are listed on the stock exchange. Apart from the large printers, there are several book printing exporters in the medium category (above Rs 100 crore or US$ 12 million). They attend international book fairs, manage to bring back good orders, and have grown their businesses. Many smaller book printers have also become exporters.  Â
An obvious reflection of their continued growth is the number of new 8-color perfecting presses purchased in the past three or four years. One book printing exporter installed his third new 8-color perfector before the end of March and another is replacing his used 8-color presses with new and highly automated 8-color presses.
As for the looming trade war or the tariffs, although there can be no mid or long-term clarity in the Trump era, the information received by book printers from the recent London Book Fair is that the imports of children’s books and textbooks into the United States will be exempt from any special tariffs. Perhaps only the 10% general ‘reciprocal’ customs duty against all countries may be applied. Apparently, in the case of children’s books and school textbooks, even China is exempt from any of the punitive ‘reciprocal’ tariffs.
We have learned that this exemption concerning book exports brought considerable relief to publishers, book producers, and importers at the recent London Book Fair. It also meant that they did not feel immediately compelled to shift their production from China to suppliers in other countries. Some publishers or importers may be seeking new suppliers; however, this is out of choice and perhaps as a future safeguard, and not out of immediate compulsion.
Thus, Indian book exporters cannot rely on any differential or ‘reciprocal’ Trump tariff against Chinese suppliers to drive US publishers or book importers to avail of their services. Some exporters may seize the opportunity, but more likely, they will not be able to avail of the opportunity to improve their price performance. Or their execution capabilities to dramatically increase their market share in US book printing imports.
Thus, the opportunity remains the same as before Trump, as do the challenges of not being the lowest-cost and most reliable producer. Leading book printers and exporters admit that we are not the lowest-cost producers. No industry segment in India is the lowest-cost producer of anything. Our inefficiencies stemming from poor and erratic skills, logistics, energy, and most of all our culture and attitudes, are not aligned with performance, commitment, and accountability.
In terms of quality and reliability, the challenges start from the raw material and consumables suppliers. Paper mills increase prices at the slightest hint of an opportunity. In some categories, there are a few local suppliers who, in times of crisis, can behave like monopolies in terms of prices, product quality, and timeliness of delivery, forcing the book exporter to cut a sorry figure in front of his customer.
Lastly, the printer’s associations have neither facts nor ideas of how to lobby the government, unlike the auto industry or the software industry, which can get huge tracts of free land to set up their businesses. Instead of coming up with real research and estimates of export prospects and employment, our printing industry associations are busy splintering themselves for the immediate gains of hollow positions and personal benefits. We can neither build a reliable supply chain nor a community of exporters.
Thus, for book printers and exporters, whether the other side bids trumps or no trumps, they will have to expand within the same speculative constraints that they have thus far managed to carve out a respectable niche. This is creditable but a somewhat smaller market share than they deserve.
