DPIIT Report on the Paper Industry: Recent Expansions & Upgrades, Fastest-Growing Segments, and Total Operational Paper Mills in India

DPIIT Report on the Paper Industry: Recent Expansions & Upgrades, Fastest-Growing Segments, and Total Operational Paper Mills in India

-Jan–Sep 2025: Rs. 10,368 Cr Paper Imports vs Rs. 6,073 Cr Exports; Gap at Rs. 4,295 Cr; Cup Stock Grows at 8–9%, Says DPIIT Annual Report in FY 25-26
-DEPARTMENT FOR PROMOTION OF INDUSTRY & INTERNAL TRADE (DPIIT), MINISTRY OF COMMERCE & INDUSTRY GOVERNMENT OF INDIA released its annual report for FY 25-26

The Pulp and Paper Times

Paper is a unique and one of the most environmentally sustainable products as it is biodegradable, reusable and recyclable and produced from sources which are renewable and sustainable.

India is one of the fastest growing paper markets in the world. Despite global economic slowdown across many sectors worldwide, the Indian Paper Industry has displayed remarkable resilience and consistent growth. Per capita paper consumption in India is estimated to be around 16 kg and is expected to increase over time with increasing level of literacy, higher growth of organised retail, need for packaging and overall economic development. The annual turnover of India’s Paper Industry is estimated to be over INR 90,000 crores, with around INR 5,000 crores contribution to the exchequer. The industry provides direct & indirect employment to over 5,00,000 and 1.5 million persons respectively

The industry has strong backward linkages with the farming community and has agroforestry roots with use of woody raw material like eucalyptus & poplar and agro residues like wheat straw, bagasse etc.

At present, there are around 550 pulp and paper mills reported to be operational. The mills in operation use different raw materials such as wood, recycled fiber, bagasse, wheat straw, market pulp etc. Accordingly based on the raw materials the paper industry is categorized into wood based, agro residues based and waste paper or recycled fibre based mills. However, most of the wood and agro based mills use mixed furnish as well as waste paper / imported pulp.

As per the recent Gazette Notification dated 4.9.2025 on revised environmental standards for Pulp & Paper Industry by Ministry of Environment Forests & Climate, the mills have been classified into;

i)   Mills producing bleached grades of chemical pulp, paper & paper boards
ii)   Mills producing unbleached grades of chemical pulp, paper & paper boards 
iii)   Recycled Fiber and market pulp based paper mills producing bleached grades of papers, paper board and newsprint 
iv)   Recycled Fiber (RCF) and market pulp based paper mills producing unbleached grades of paper, paper board and newsprint 
v)   Recycled fibre & market pulp specialty paper mills.

Based on the raw material, around 74-76% of the paper produced in the country is from RCF followed by wood / bamboo (18-20%) and Agro residues (6-8%). Based on the finished product, the percent share in Packaging Paper / Paper board is 65%, in Writing & Printing Paper is 23%, in Newsprint is 5%, in Specialty Paper is 4% and in Others is 3%.

Domestic Market Demand: 

With the demand for paper growing at an annual growth rate of 6-7 %, the sector is poised for further expansion to meet the rising need of paper and paper board. The packaging paper and paper board consumption is projected to grow at CAGR of 8.2% between 2024-2030. The paper packaging market valued at 12.87 Billion USD in 2024 is expected to reach 17.74 billion USD by 2029 growing at a CAGR of 6.63%.

The packaging segment, contributing ~65% of the industry is growing at 7-8% per annum. The tissue segment, driven by health and hygiene awareness, is the fastest growing segment (12-13%), followed by cup stock (8- 9%). Writing & Printing paper remains stable with ~ 3% growth supported by educational and office demand. There are around 38 operational newsprint mills at present in the country.

Import & Export Scenario

During 2024-25, imports of major grades of paper and paperboard (HS Codes 4802, 4803, 4804, 4805, 4808, 4810) reached 2.05 million tonnes (INR 14,629 crores). Key imports included coated paper/board, kraft paper, and uncoated writing & printing paper, primarily from China, Indonesia, and the USA.

Exports in 2024-25 stood at 1.52 million tonnes (INR 8,286 crores), with major destinations in South Asia, West Asia, and Africa. Key export grades included coated paper/board (HS 4810), uncoated writing/printing paper (HS 4802), kraft paper (HS 4804), and other uncoated grades (HS 4805).

As per available data the total imports & exports of major grades of paper and paperboard (HS Codes 4802, 4803, 4804, 4805, 4808, 4810) during January 2025 – September 2025 have been 1.30 Million Tonnes ( INR 10,368 Crores) & 1.11 Million Tonnes ( INR 6073 Crores ) respectively.

Recent Expansions & Upgradations

The following measures have been taken by the following paper mills to expand their capacity: • Kuantum Papers Ltd: Recovery boiler upgrade for efficiency

• Andhra Paper Ltd: New tissue paper machine planned and Upgrading Paper Machine-3 to increase production by 60 TPA 
• NR Ararwal Industries Ltd: Installed India’s largest packaging board machine (900 TPD) 
• Satia Industries Ltd.: INR 4–4.5 billion investment in PM-3 upgrade, adding 18,000–20,000 MTPA capacity 
• Orient Paper & Industries: Expansion project adding 8,500 TPA to existing 100,000 TPA capacity
 

Published at : Aug 18, 2026 10:25 AM (IST)

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