The Indian paper industry has expressed serious concern over a potential rise in paper imports following recent changes to the Goods and Services Tax (GST) framework, cautioning that the move could weaken domestic manufacturers and threaten the government’s ‘Make in India’ initiative.

According to the Indian Paper Manufacturers Association (IPMA), the revised GST structure could make India more vulnerable to becoming a “dumping ground” for low-cost paper from foreign markets.

“While domestic producers are grappling with higher input costs due to the new GST regime, imported paper — particularly grades used for exercise books and notebooks — will now enter India completely tax-free,” said IPMA President Pawan Agarwal. “This will distort market competition and severely impact the viability of Indian paper mills.”

Data shared by the association indicates that India’s paper imports have already seen a steep surge over the past four years, expanding at a compound annual growth rate (CAGR) of more than 17% — among the fastest across major commodity segments.

Citing figures from the Commerce Department, IPMA noted that imports of paper and paperboard have nearly doubled, rising from 1.08 million tonnes in FY21 to 2.06 million tonnes in FY25, with the total import value touching approximately ₹15,000 crore.

Industry experts fear that unless corrective measures are introduced, the latest GST reforms could further accelerate this trend, discouraging domestic investment and jeopardizing employment in the paper manufacturing sector.

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