GST Reforms Threaten Indian Paper Industry

The Indian paper industry warns that recent GST reforms could lead to a significant increase in paper imports, harming domestic competitiveness and impacting the 'Make in India' initiative. The Indian Paper Manufacturers Association highlights concerns over uncoated paper exemptions, forecasting increased costs for domestic producers and repercussions for the education sector.

The Indian paper industry voices alarm over a potential flood of paper imports following recent GST reforms. The industry's representatives suggest the change may weaken domestic competition and threaten the government's 'Make in India' initiative, crucial for local economic development.

Pawan Agarwal, President of the Indian Paper Manufacturers Association (IPMA), has expressed concerns that the GST amendments will open the floodgates to cheaper foreign paper, further stressing local manufacturers who already grapple with high input costs. Imported paper products, now tax-free, create an uneven playing field, penalizing homegrown companies.

Recent data from the IPMA reveals a sharp rise in paper imports, which have doubled over four years. As GST exemptions reduce import taxes to zero, domestic producers may face a dramatic price mismatch, with potential consequences for the education sector due to rising production costs of notebooks and textbooks.

(With inputs from agencies.)