Imports of paper and paperboard into India surged by 34 per cent to reach 19.3 lakh tonnes in the financial year 2023-24, according to data cited by the Indian Paper Manufacturers Association (IPMA).
The industry body warned that the rising inflow of imports, particularly from ASEAN nations under a regional free trade pact, poses a significant threat to the government’s ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives aimed at boosting domestic manufacturing.
Shipments from the 10-member Association of Southeast Asian Nations (ASEAN) bloc, including Singapore, Thailand, Cambodia and Laos, accounted for 27 per cent of India’s paper imports at 5.1 lakh tonnes, doubling from 2.7 lakh tonnes in the previous fiscal year, according to commerce ministry data.
These imports enter India duty-free under the ASEAN-India Free Trade Agreement.
“The unprecedented imports of paper and paperboard pose a significant threat to India’s Make-in-India and self-reliance initiatives,” the IPMA stated in a release. The major paper grades imported include printing paper, coated paper and paperboard.
Overall, paper and paperboard imports in value terms doubled from Rs 6,140 crore in fiscal 2020-21 to Rs 13,248 crore in 2023-24, according to commerce ministry data cited by the association.
The IPMA argued that despite substantial investments by domestic manufacturers to enhance technology, quality and sustainable forestry practices, these capital infusions are now at risk from the influx of duty-free imports. It has urged the government to increase the Basic Customs Duty (BCD) on paper and paperboard imports from the current 10 per cent to 25 per cent.
While not disputing the import figures, some economists have countered that facilitating free trade and consumer choice are important policy goals as well. They argue affordable imports can benefit manufacturers and consumers in sectors reliant on paper inputs.
The debate highlights the challenging balance policymakers face between promoting self-reliance and enabling competitive industries while also reaping gains from international trade. As India pursues its economic development agenda, facilitating both a robust domestic manufacturing core and an open, efficient market will remain an ongoing objective.