Union Budget Boosts Manufacturing & MSMEs, Driving Growth in Paper Industry

The emphasis of the Union Budget on manufacturing and MSMEs is anticipated to increase the demand for paper and packaging products in various sectors, which is positive for the expansion of the paper industry, a paper manufacturers' association stated. 

The Indian Paper Manufacturers Association (IPMA) stated that the Union Budget strongly emphasizes enhancing consumption, manufacturing, and sustainability, which aligns effectively with the growth of the paper sector in India.

IPMA President Pawan Agarwal stated that the industry values the government's ongoing emphasis on economic expansion, as it directly impacts the demand for paper and packaging materials in various sectors.

The Budget's focus on the manufacturing sector, particularly MSMEs, will lead to higher demand for paper-based packaging, which is an environmentally friendly substitute for single-use plastic, it noted.

Incentives for policies designed to promote recycling and the use of sustainable raw materials would enhance the Paper Industry's dedication to a circular economy.

Although we appreciate these actions, we also call on the government to tackle issues concerning the local availability of raw materials, such as wood and recycled paper, and the necessity to appropriately raise the basic customs duty (BCD) on paper and paperboard imports to level the playing field for domestic producers, Agarwal stated.

As per information provided by the Department of Commerce, imports of paper and paperboard from China have experienced a notable increase of 44 percent in the first half of the current fiscal year, according to the IPMA.