The Indian paper industry is highly fragmented. It comprises of small, medium, and large paper mills with paper production capacity ranging from 10 to 1650 tonnes per day. As the primary raw resource for paper manufacture in the Indian hinterland, wood and agricultural waste is extensively used. The Indian paper industry is famous for its production of writing, newspaper, and commercial paper. Mills generate newsprint-grade paper using recycled wastepaper as the primary raw source. However, the raw material base has been changing significantly over the years.
The paper industry in India produces 5 per cent of the world's total paper. India accounts for about 5 per cent of the global paper market. The market is worth about US$ 8 billion. The paper industry in India generates an estimated INR 70,000 crore in yearly revenue, with a domestic market size of INR 80,000 crore. The paper industry's tax contribution to the Government is around INR 5,000 crore.