India has major demand drivers that are cause for a very positive outlook in the pulp and paper industry. These include 9.5% GDP growth, increasing literacy, growing consumerism and optimism and a will to expand by industry leaders. India is the fastest growing pulp and paper market in the world with 6% demand growth per annum. Many significant projects have started within the last 5 years, such as a new kraft mill and paper machine in Lalkua which started up in mid-2010. However, there are significant challenges facing the industry, the biggest of which is the lack of raw material. Wood and non-woody fibres are in short supply, with recycled fibre providing a significant volume as recovery and recycling systems are implemented. Government regulations and technical issues pose other significant obstacles for the industry. However, the Indian paper industry is poised for continuous and rapid growth in the next decade to satisfy rapidly expanding domestic demand for all paper grades. The aim of this paper is to give some first-hand insights into the industry based on our forays and projects undertaken in this market.
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