Paper and paperboard imports in India have doubled over the past four years, reaching a record 2.05 million tons in FY25 compared to 1.08 million tons 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 said.
The association has expressed deep concern over the continued rise in paper and paperboard imports, which in FY25 alone saw a 33% jump in volume from China. Imports from China now account for 27% of the total paper and paperboard imports into India, with ASEAN countries not too far behind at 20% of the total imports. In value terms, imports of paper and paperboard touched nearly INR 15,000 crore in FY25.
In the four years since FY21, paper and paperboard imports into India have grown at a CAGR of over 17% in volume terms, one of the steepest increases among major commodities. Over this period, imports from China have increased at a CAGR of over 39%, and from ASEAN at over 30%. Imports of coated paper and paperboard, and uncoated writing and printing paper have more than doubled in volume terms.
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 predatory imports, especially from countries like China and Indonesia, has been eroding the competitiveness of the domestic manufacturers, leading to underutilisation of installed capacities.”
“Apart from the overall negative impact of cheap 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 & Internal Trade (DPIIT), out of over 850-900 paper mills in the country, only 550 are currently operational. This is a serious setback to the sector, which has traditionally supported a large number of rural and small-scale livelihoods,” added Agarwal.
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, undertake trade remedial measures, 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 Rohit Pandit, secretary general IPMA. He added that such a high growth in imports not only jeopardises the domestic industry but also impacts employment generation and rural livelihoods linked to the paper value chain.
