The indian paper industry


The Indian paper industry has been historically divided on a three dimensional matrix identified by size, classs manufactured and natural stuff utilised. By and large, duty rates have protected smaller units using “ unconventional ” natural stuff. Over the old ages, the growing of assorted sections, investings degrees in specific sections, technological alterations, industry atomization and strength of competition have been significantly influenced by the Government duty policy. The present Excise responsibility on Paper is 12 % . The Government of India from clip to clip has given some benefits to little iby a factory is indictable merely @ 8 % and thereafter it is @ 12 % .The three chief classs of paper manufactured in India are: -1. Newsprint2. Writing and printing.3. Industrial Variety ( Craft paper and Duplex Board ) Over 550 participants presently populate the industry and the estimated capacity is about ndustries in order to protect them i.e. the first 3500 tones produced7.00 million Metric Tones Per Annum ( MTPA ) . Atomization is terrible in the “ industrial ” ( boxing ) classs, which rely on “ unconventional ” natural stuff such as waste paper and partially agro residues. This division by and large comprises of units with an mean size of about 10000 MTPA and contributes to 45 % of the end product of paper and paper boards in the state. Although the other divisions in the Indian paper industry are besides fragmented by international criterions, the grade of atomization is less terrible. “ Newspaper ” boulder clay about 1995, was the exclusive preserve of big public sector units and was good protected by high import duty barriers. However, imports contributed to about 50 % of the domestic ingestion. Since so, new domestic capacity with private investing has been allowed to be created. Thisgrowth has relied viz. on De-inked waste paper as a beginning of natural stuff. Currently import responsibility on newspaper is about 5 % and domestic industry of newspaper is exempted from excise responsibility. This duty construction for newspaper has seen Indian newspaper monetary value closely mapping international monetary values. Imports still constitute about 30 % of ingestion and newspaper contributes about 10 % of the entire production of paper and poster boards. The figure of participants in the newspaper section is comparatively limited and fabrication capacities are larger than in the packaging classs section. Historically, the majority of the end product of “ Cultural ” grades – comprising of authorship, printing, office letter paper paper and forte paper has been the preserve of “ big ” manufacturers, who use forest based natural stuff in incorporate pulping installations augmented by imported mush. This section has been systematically taxed at higher rates due to its size and usage of “ conventional ” forest based natural stuff. Investing in works has besides been higher. With comparatively smaller figure of playeto be higher quality, have been high.Import duty degrees, although much lower now, still continues a important barrier to imports. The high investing degrees required and limited “ conventional ” fiber resources are the major hindrances to growing in this section for both bing participants every bit good as new entrants. “ Lower terminal cultural classs ” manufactured by smaller participants utilizing unconventional natural stuffs in low investing, low tech workss cater to consumers in the monetary value sensitive bomber section of this market. This sub section depends significantly on the duty derived function based on size and natural stuff for its viability.The Indian Paper industry is traveling through significant alterations. Global demand for paper is expected to turn by approximately 4 % p.a. over the following 5 old ages. The domestic demand is expected to turn at approximately 8 % which will ensue in addition of demand by 30 Lakh tones about over the following 5 old ages. It is expected that imposts responsibility on import of paper will diminish from the current degree to the degree of 10 % over a period of clip due to WTO irresistible impulses. R and high imThe import of natural stuff for paper including mush, waste paper and intelligence print is likely to increase by at least 15 % to 20 % in 2005-06 to maintain up with turning demand port duty protection, monetary values of terminal merchandises, for paper in the domestic market. Despite to the restraints like over crowded market and restriction in securing the coveted quality of waste paper, there are indexs of a resurgence in the Indian Paper Industry. In the current twelvemonth, selling monetary value has marginally increased and enabled the industry to partly countervail the rise in cost of inputs, fuel & A ; labour.The paper industry has an of import societal function to play for the state. Use of paper is considered as an index of cultural growing. Key societal aims of the Government like eliminating illiteracy, doing primary instruction compulsory etc. are really much related to the paper industry. The paper industry is besides lending towards fulfilment of assorted demands of the industry as a whole like information airing, promotion etc. which in bend stimulate industrial growing of the state. The paper industry has, therefore, a catalytic function to play non on the industry but besides for the life criterions of the people. The new millenary is traveling to be the millenary of the cognition. So demand for paper would travel on increasing in times to come. Because of paper industry ‘s strategic function for the society and besides for overall industrial growing, it is necessary that the paper industry performs well.The mush and paper sector presents one of the energy intensive and extremely polluting sectors within the Indian economic system and is hence of peculiar involvement in the context of both local and planetary environmental treatments. Additions in productiveness through the acceptance of more efficient and cleaner engineerings in the fabrication sector will be most effectual in unifying economic, environmental, and societal development aims. A historical scrutiny of productiveness growing in India ‘s industries embedded into a broader analysis of structural composing and policy alterations will assist place possible hereafter development schemes that lead towards a more sustainable development way. Issues of productiveness growing and forms of permutation in the mush and paper sector every bit good as in other energy intensive industries in India have been discussed from assorted positions. Historical estimations vary from bespeaking an betterment to a diminution in the sector ‘s productiveness. The fluctuation depends chiefly on the clip period considered, the beginning of informations, the type of indices and econometric specifications used for describing productiveness growing. Sing forms of permutation most analyses focus on inter fuel permutation possibilities in the context of lifting energy demand. Not much research has been conducted on forms of permutation among the primary and secondary input factors: capital, labour, energy and stuffs. However, analysing the usage and permutation possibilities of these factors every bit good as placing the chief drivers of productiveness growing among these and other factors is of particular importance for understanding technological and overall development of an industry. In this paper we contribute to the treatment on productiveness growing and the function of technological alteration. We introduce the mush and paper industry in more item taking into

History industry specific facets such as structural composing, production, engineerings,

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Energy ingestion within procedures, sector specific policies etc. This following we derive both statistical and econometric estimations of productiveness growing for the fertiliser sector over clip. For the statistical analysis we develop the Kendrick and Solow indices while for the econometric analysis a translog cost map attack utilizing both cross-state and national clip series informations is employed. The consequences are so interpreted within a broader context of structural and policy alterations in the sector every bit good as other sector specific facets. Future energy usage depends on the degree of production and the engineerings employed. Furthermore, different economic and policy scenes affect constructions and efficiencies within the sector. The concluding subdivision therefore examines the on-going alterations in the mush and paper industry construction. It compares universe best engineerings to Indian engineerings and place potencies and barriers to the acceptance of such efficiency betterments. We conclude the study in foregrounding the energy efficiency and productiveness betterments that could be achieved by using more efficient engineerings.

Paper industry in India is the fifteenth largest paper industry in the universe. It provides employment to about 1.5 million people and contributes Rs 25 billion to the authorities ‘s pool. The authorities regards the paper industry as one of the 35 high precedence industries of the state.

Paper industry is chiefly dependent upon forest-based natural stuffs. The first paper factory in India was set up at Sreerampur, West Bengal, in the twelvemonth 1812. It was based on grasses and jute as natural stuff. Large scale mechanised engineering of papermaking was introduced in India in early 1905. Since so the natural stuff for the paper industry underwent a figure of alterations and over a period of clip, besides wood and bamboo, other non-conventional natural stuffs have been developed for usage in the papermaking. The Indian mush and paper industry at present is really good developed and established. Now, the paper industry is categorized as forest-based, agro-based and others ( waste paper, secondary fiber, bast fibres and market mush ) .

In 1951, there were 17 paper Millss, and today there are about 515 units engaged in the industry of paper and poster boards and newspaper in India. The mush & A ; paper industries in India have been categorized into large-scale and small-scale. Those paper industries, which have capacity above 24,000 metric tons per annum are designated as large-scale paper industries. India is self-sufficing in industry of most assortments of paper and poster boards. Import is confined merely to certain forte documents. To run into portion of its natural stuff needs the industry has to trust on imported wood mush and waste paper.

Indian paper industry has been de-licensed under the Industries ( Development & A ; Regulation ) Act, 1951 with consequence from 17th July, 1997. The interested enterprisers are now required to register an Industrial Entrepreneurs ‘ Memorandum ( IEM ) with the Secretariat for Industrial Assistance ( SIA ) for puting up a new paper unit or significant enlargement of the bing unit in allowable locations. Foreign Direct Investment ( FDI ) up to 100 % is allowed on automatic path on all activities except those necessitating industrial licences where anterior governmental blessing is required.

Growth of paper industry in India has been constrained due to high cost of production caused by unequal handiness and high cost of natural stuffs, power cost and concentration of Millss in one peculiar country. Government has taken several policy steps to take the constrictions of handiness of natural stuffs and substructure development. For illustration, to get the better of short supply of natural stuffs, responsibility on mush and waste paper and wood logs/chips has been reduced.

Following steps need to be taken to do Indian paper industry more competitory:

  • Improvements of cardinal ports, roads and railroads and communicating installations.
  • Revision of wood policy is required for wood based paper industry so that plantation can be raised by industry, co-ops of husbandmans, and province authorities. Degraded forest land should be made available to the industry for raising plantations.
  • Import responsibility on waste paper should be reduced.
  • Duty free imports of new & amp ; 2nd manus machinery/equipment should be allowed for engineering up step.


Mentality for paper industry in India looks highly positive as the demand for upstream market of paper merchandises, like, tissue paper, tea bags, filter paper, light weight online coated paper, medical class coated paper, etc. , is turning up Indian Paper industry is the fifteenth largest industry in the universe. It provides employment to about 1.5 million people and contributes Rs. 25 billion to the authorities policy ‘s pool. The authorities regards the paper industry as one of the 35 high precedence industries of the state.

Paper industry is chiefly dependent on forest-based natural stuffs. The first paper factory in India was set up at Sreerampur, West Bengal, in the twelvemonth 1812. It was based on grasses and jute as natural stuff. Large Scale mechanized engineering of papermaking was introduced in India in early 1905. Since so the natural stuff for the paper industry underwent a figure of alterations and over a period of clip, besides wood and bamboo, other non-conventional natural stuffs have been developed for usage in the papermaking. The Indian Pulp and Paper industry at present is really good developed and established. Now, the paper industry is categorized as forest-based, agro-based and other ( godforsaken paper, secondary fiber, basting fibers and market mush ) .

Growth of paper industry in India has been constrained due to the high cost of production caused by inadequate and high cost of natural stuffs, power cost and concentration of Millss in a peculiar country. Government has taken several policy steps to take the constrictions of handiness of natural stuffs and substructure development. Goldar and Kumari ( 2003 ) analysed the impact of liberalization on the productiveness growing of Indian fabrication industries and found productiveness accelerated in paper, paper merchandises, printing and publication industry in the 1990s. Pattnayak and Thangavelu ( 2005 ) studied the economic reform and productiveness growing in Indian fabrication, including paper and paper merchandises industry and found a small addition in the growing of TFP of paper and paper merchandise industry during post-reform period. Sindhu and Balasubramanyam ( 2006 ) computed Malmquist index of productiveness growing of Indian paper and paper merchandises industry during pre-reform period. The rate of growing was 3.1 per cent and this was due to the betterment in proficient alteration.

Several surveies have attempted to gauge the relationship between economic reforms and productiveness growing in the Indian fabrication sector. Some surveies have reported that policies of liberalisation improved the productiveness of the fabrication industry ( See Majumdar 1996 ; Fujita 1994 ; Sharma 1999 ; Unel 2003 ; TSL 2003 ; Banga and Goldar 2007 ) , whereas some have detected negative effects, or at least no important betterment, in productiveness growing since the oncoming of economic reforms in 1991 ( See Trivedi et al. , 2000 ; Balakrishnan et al. , 2000 ; Unni and Rani 2001 ; Goldar 2004 ; Das 2004 ) . Therefore, the subject of the effects of economic reforms on productiveness growing remains a critical focal point of research.

While there have been legion surveies conducted on productiveness growing, merely a comparatively few surveies have concerned themselves with the beginnings of productiveness growing in the Indian economic system. The traditional Tornqvist index, which is applied to cipher entire factor productiveness growing, is incapable of break uping the productiveness alteration into motions along and alterations in frontier, because the Tornqvist index assumes that the ascertained end product is the effect of the best pattern frontier. Conversely, the Malmquist index decomposes the entire productiveness growing into ‘efficiency alteration ‘ and ‘technical advancement ‘ . TFP can be increased by utilizing its bing engineering and factor inputs more efficiently-this is referred to as ‘efficiency alteration ‘ . The TFP of an industry can besides increase when the industry adopts inventions or technological betterments, and this procedure is referred to as ‘technological alteration ‘ . Therefore, alterations in TFP from one period to the following are the merchandises of both efficiency alteration and technological advancement. Most old surveies conducted in India have failed to see the beginnings of such alterations in productiveness growth1. This paper has attempted to measure the effects of economic reforms on productiveness growing in Indian paper and paper merchandises industry. We utilize the Malmquist index, which can show that the reform has positive effects on efficiency alteration or proficient advancement, every bit good as entire factor productiveness. The paper is organized as follows. A brief sum-up of relevant Indian economic reforms is presented in Section II, and the methodological analysis utilized to gauge the Malmquist productiveness index is provided in Section III. Section IV shows the information beginnings and gives a


Political Factor

In late seventiess, they started implementing some reforms such as “ cut downing the barriers to entry and enlargement, simplifying processs, and supplying easier entree to better engineering and intermediate stuff imports ” ( Ahluwalia, 1991 ) . There were some extra reforms during 1980s, but the most extremist reforms were initiated since 1991, after the terrible economic crisis in the financial twelvemonth 1990/91. the major policy alterations initiated in the industrial sector since July 1991 include remotion of entry barriers, decrease of countries reserved entirely for public sector, rationalisation of attack towards monopolistic and restrictive pattern, liberalisation of foreign investing policy, farreaching liberalisation of import policy with regard to intercede and capital goods, steps to convey about regional balance, particularly the development of backward countries and promoting the growing of employment intensifier in little and bantam sector ( Madheswaran et al. , 2007 ) .

Trade policy of a state consist a set of policy steps that have impact upon its international trade and economic dealingss with the other state. Free trade policy permits international flow of goods and services without any unreal hindrances. If trade is left free, there will be no duty or no-tariff limitations and every state is likely to specialize in the production and export of the merchandise. The benefits of specialisation make the optimal usage of factor resources. Haberler points out that free trade can lend in the procedure of growing in different ways ; ( I ) it enables the unrestricted import of natural stuffs and capital goods which are indispensable for industrial enlargement, ( two ) free trade aids in an easy transportation of advanced proficient know-how and entrepreneurship from the advanced to the less-advanced states, ( three ) free trade facilitates big scale international capital motions to rush up the procedure of growing and ( four ) free trade promotes competition, efficiency and productiveness can make such capacities in the hapless states, which enable them to accomplish higher degrees of production, employment and income. Protectionism is a trade policy which advocates protection of place industries from foreign competition. A free exchange of goods may be positively harmful to economically backward states, a state may bask really great national advantage but may non be able to work them due to miss of accomplishment, and deficient substructure. The policy of protection has been good expressed in the undermentioned words “ Nurse the babe, Protect the kid and Free the grownup. ”

Indian economic system was under the protected trade policy government boulder clay July 24, 1991 and the policy steps were liberalised and entered in free trade government after 1991. These two policies led to different impact on Indian fabrication in general and Indian paper and paper merchandises in peculiar.

The major sectors bring forthing e-waste include persons, little concerns, big concerns, establishments, authoritiess and original equipment makers ( OEMs ) . Due to the new engineerings, the rate of obsolescence is really high.

Frequently jeopardies originate due to the improper recycling and disposal procedures used. As new engineerings enter the market, e-waste is a mounting concern. The estimation is that 20 million devices become disused with many kgs of toxins in each twelvemonth.

Environmental deductions

Over the old ages, e-waste leads to chemical and metal leaching eventually ensuing in groundwater taint. Mercury, for illustration, will leach when certain electronic devices such as circuit surfs are destroyed. Lead has been found to leach from broken lead-containing glass, such as the cone glass of cathode beam tubings from Television ‘s and proctors.

When brominated fire retarded plastics or plastics incorporating Cd are landfilled, both PBDE and Cd may leach in to dirty and land H2O. Landfills are besides prone to uncontrolled fires, which release toxic exhausts.

Disposal patterns

Disposal of e-wastes is a peculiar job faced in many parts across the Earth. Landfilling e-waste is the most widely used method of disposal. Incineration is besides being practiced for some parts of the computing machine, particularly overseas telegrams. About 3-5 per cent of the computing machines that have been discarded by their users are re-used. Re-use involves direct second-hand usage or usage after little alterations of the original functioning equipment like memory ascents, etc.

Though recycling is deriving popularity, rates of recycling are still really low.

Indian scenario

In India, most of the recyclers presently engaged in recycling activities do non hold this expensive engineering to manage the waste. Computer bit is managed through assorted direction options such as merchandise reuse, conventional disposal in landfills, incineration and recycling. However, the disposal and recycling of computing machine waste in the state has become a serious job since the methods of disposal are really fundamental and pose grave environmental and wellness jeopardies.

India now besides has to pull off the waste being dumped by other states. Over the old ages, Toxics Links has on a regular basis been claiming that big measures of e-wastes are being dumped on to Indian shores in the name of recycling.

Remedial action

The U.S. House of Representatives approved a measure on 12th July, 2006, which requires the US Environmental Protection Agency ( EPA ) to analyze the usage of energy-efficient waiters that can cut down the power demand of informations centres packed with equipment.

In India, the National Energy Labeling plan was officially launched on 18th May, 2006, for the first clip by the Bureau of Energy Efficiency ( BEE ) . It has been made mandatary for many electronic merchandises to acquire certified by BEE. The enfranchisement of Personal computer ‘s, Laptop ‘s and waiters are yet to be made compulsory under this plan.

Improvements in datacenter energy efficiency can give great nest eggs. They cut down direct energy consumed by IT equipment and besides cut down indirect costs by cut downing the demand for increased floor infinite and more cooling equipment to disperse server-generated heat. Energy efficient waiters are presently available and perform every bit good as, or better than, less efficient opposite numbers.

IEEE has come out with a Standard 1680 with the support of EPA in which it mentions that all desktops have to hold a “ Energy Star ” label to as a enfranchisement of energy efficiency.

An illustration of a successful international voluntary enterprise is that all applicable merchandises of Sun Microsystems comply with demands of “ Energy Star ” .

For authorities policy

Government should play a critical function by revisiting the proportion of clip and financess spent by authoritiess on increasing the supply of energy at the disbursal of attempts to diminish the demand. It should besides set up revenue enhancement inducements and authorities procurance guidelines that motivate purchase of energy efficient waiters and other informations Centre constituents.

The authorities should besides further voluntary industry attempts to develop energy efficient calculating merchandises and prosecute in public private partnership.


The Ministry of Communications and Information Technology has emphasized the demand for recycling and re-use of end-of-life electronic equipment. Appropriate statute law and its enforcement are perfectly indispensable to undertake this job.

There are different options available for computing machines besides merely throwing them off ( or hive awaying them ) . Many computing machines are built in a manner that allows them to be repaired or upgraded, which means they can be reused.

The other feasible option is recycling. The authorities regulations should do it compulsory for the OEMs to purchase back their merchandises at the terminal of the life. Thus the OEMs have to be equipped with recycle and disposal installations of the rejected IT hardware.

Some taking computing machine fabrication companies purely comply to the environmental friendly demands.

For illustration, Sun Microsystems avoids the usage of risky substances where possible. The company has a alone merchandise “ take back ” and recycle programme, which recycles, reclaims and reuses both constituents and full systems to the benefit of its clients and the environment. In fact less than 1 per cent enters the waste watercourse.


The continued and expanded usage of electronic information and communicating engineerings is likely to be a cardinal to accomplish planetary sustainability. However, with the current industrial engineering and substructure, the electronic merchandises have intolerably high societal and environmental impacts. Therefore, while geting electronic merchandises one must see that the points are made up of fewer toxic constituents and are reclaimable, energy efficient, designed for easy upgradation or disassembly, environmentally preferred and have take back options. Finally, it is the duty of every person to work for a cleansing agent environment.

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