India’s paper and paperboard imports have surged dramatically over the past four years, raising alarm bells within the domestic paper manufacturing sector. With imports reaching a record 2.05 million tonnes in FY2024-25, the industry is facing mounting pressure from global competition, particularly from China and ASEAN countries.

The Rising Tide of Paper Imports

Between FY2020-21 and FY2024-25, India’s paper and paperboard imports have almost doubled, growing from 1.08 million tonnes to 2.05 million tonnes. This trend, driven by increasing demand, cost competitiveness of foreign suppliers, and favourable trade agreements, is jeopardizing the viability of small and medium-sized paper mills across the country.

📊 Key Data Snapshot: India’s Paper Imports

Indicator	FY2020-21	FY2024-25	% Change
Total Paper Imports (tonnes)	1.08 million	2.05 million	+90%
Import Value (₹ crore)	~₹8,000 crore*	~₹15,000 crore	+87.5%
Imports from China	N/A	27% of total	+33% over 4 years
Imports from ASEAN	N/A	20% of total	N/A
Operational Paper Mills	~850-900 total	~550 currently operational	~40% inactive

*Estimated based on growth trend and current valuation.

China and ASEAN: Leading the Import Surge

China alone accounts for 27% of India’s total paper imports as of FY2024-25, a 33% rise over the past four years. ASEAN countries collectively contribute another 20%, highlighting India’s growing dependence on regional supply chains. The influx of cheaper and sometimes better-quality imports has eroded the market share of domestic producers.

Domestic Industry Under Strain

India’s domestic paper industry, home to around 850–900 mills, is reeling under the pressure. Only 550 of these are operational today, as the rest struggle with commercial unviability due to price undercutting by imports, lack of competitiveness in product quality, and outdated infrastructure.

According to the Indian Paper Manufacturers Association (IPMA), this is not merely a commercial issue — it is a structural threat to India’s industrial base and employment in the sector. The association has called for immediate government intervention, including:

• Stricter quality control standards for imported paper.
• Review of trade agreements, especially those offering duty-free imports.
• Remedial trade measures such as anti-dumping duties and safeguards.

Factors Driving the Import Boom

Several macroeconomic and policy-related factors contribute to this increase:

🔍 Key Drivers of Paper Imports

1. Growing Domestic Demand: Urbanization, e-commerce growth, and the education sector are driving paper consumption.
2. Lower Import Prices: Cost competitiveness of foreign suppliers often makes imported paper cheaper than domestic products.
3. Product Quality and Variety: Imported paper offers better grades and meets specific industry requirements.
4. Capacity Constraints: Many local mills operate with outdated technologies and underutilized capacities.
5. Favorable Trade Agreements: Duty-free or low-duty access under FTAs incentivizes imports.
6. Sustainability Practices: Some international suppliers offer eco-certified products preferred by global brands.
7. Foreign Investment in Manufacturing: Countries like China and Indonesia have expanded their manufacturing capacity and now rely on exports.
8. Currency Fluctuations: Favorable exchange rates can make imports more economically attractive.

Conclusion: A Call to Action

India’s paper manufacturing industry stands at a critical crossroads. While demand continues to rise, unchecked imports threaten to displace local capacity and derail investments in modernization and expansion. A balanced trade and industrial policy — one that supports fair competition while enabling domestic growth — is essential to preserve the future of India’s paper sector.