The ongoing conflict in West Asia is creating dual challenges for India’s paper industry, industry experts and trade bodies report. Rising freight costs and supply chain disruptions are hitting exports, while higher input prices for raw materials such as wood pulp and chemicals are squeezing margins domestically.
Export-dependent segments of the paper industry are particularly vulnerable, as delays and increased shipping charges to Gulf markets threaten revenue growth. At the same time, domestic manufacturers are grappling with inflationary pressures, which could force price hikes for end consumers.
Industry associations have urged the government to consider targeted support measures and explore alternative trade routes to mitigate the impact of the prolonged West Asia tensions on both exports and domestic production.