The Indian paper industry has been in existence for more than a decade. Today there are more than 850 paper mills functioning all over the country. These industries manufacture various types of paper materials required for different purposes. This industry is known to be one of the leading industries in India as it provides employment to more than 1.5 million people.
The widespread demand for different types of paper products such as book, magazines, newspapers, bags, plates, cups, envelopes and so forth has further escalated the growth of this industry. But the lack of proper raw materials has affected the future of this thriving industry in India. Large scale deforestation has led to the depletion of raw materials for the production of paper products.
According to the type of raw materials used for production purposes, the paper industry in India is classified into three categories which include the wood based, waste paper based and the agro based industries. Most of the mills in India are based on raw materials which are non-conventional such as waster paper. Today the paper industry in India is in search of technologically advanced methods to reduce the cost of production and augment the existing technologies to meet the international standard levels. The government of India has introduced various rules and regulations to encourage joint ventures and investments in this field.
The strong demand of paper products has pushed the Indian paper industry to a new level. It is expanding to meet the growing demands of the people. Vast changes have taken place in the field of printing paper, tissues, newsprint and so forth. Modern management along with latest technological machines is used for the completion of various projects. Nowadays, foreign investors are interested in setting up new plants for manufacturing paper to bring forth huge revenue to the paper industry.
The paper industry is planning to widen its horizons with the help of joint ventures and new investors.
However, the paper industry is facing many challenges due to the shortage of raw materials and the rise in population. The demand for industrial wood, fire wood and timber is continuing to grow due to the ever increasing population.
Challenges Faced by the Industry
Some of the other challenges faced by this industry are the location of paper units. Most of the paper units in the country are located in remote areas. The industry is quite unattractive to the young generation as it is located away from the city and modern facilities.
Lack of health facilities and educational institutes near these units are also considered to be one of the greatest drawbacks of this industry. The revenue procured from the paper industry is considerably less in comparison to the other industries in India.
Today the country uses alternative raw materials to produce high quality paper. Most of the industries have become environmentally responsible by adopting eco-friendly manufacturing processes.
The future of the Indian economy is indirectly linked to the future of the paper industry in India. The industry is expected to witness a better future in the coming years.