Paper industry must evolve to stay competitive: Finance Minister Sitharaman

The Union Budget's focus on manufacturing and MSMEs is expected to boost demand for paper and packaging materials across multiple sectors and bodes well for the growth of the paper industry, a paper manufacturers' body said on Monday.

The Indian Paper Manufacturers Association (IPMA) in a statement said the Union Budget lays a strong emphasis on boosting consumption, manufacturing and sustainability, which aligns well with the growth of the paper industry in India.

The industry appreciates the government's continued focus on economic growth, which has a direct bearing on the demand for paper and packaging materials across multiple sectors, said IPMA President Pawan Agarwal.

The Budget's thrust on the manufacturing sector, including MSMEs, will contribute to increased demand for paper-based packaging, an eco-friendly alternative to single-use plastic, it added. Policy incentives aimed at encouraging recycling, and the use of sustainable raw materials would further strengthen the Paper Industry's commitment to a circular economy.

While we welcome these measures, we also urge the government to address concerns related to domestic availability of raw materials, including wood and recovered paper, as well as the need for suitably increasing the basic customs duty (BCD) on import of paper and paperboard to provide domestic manufacturers a level playing field, stated Agarwal.

According to data released by the Department of Commerce, imports of paper and paperboard from China have shown a significant jump of 44 per cent during the first half of the ongoing fiscal year, the IPMA said.

(Except for the headline, nothing has been changed by AINN in the PTI copy.)