321billion in 2008-09. In 2009-10, the country produced 9.18 million tons of paper, growingat an average 6-7% compared with 2% growth in developed countries.
The paper industry growth is forecast at 8.4% annually, touching 11.5 million tons in 2011-12 and 15 million tons by 2015.In India, paperboard accounts for nearly 47.3% of the total market size, followed bywriting and printing paper (29.6%), newsprint (19.5%) and speciality paper (3.6%)according to CRISIL Research.
India is among the world's fastest growing paper markets; an increase in consumption by one kg per capita can potentially increase annual paper demand by a million tons.
India's paper production is forecasted to grow at a CAGR of 8.4% while consumption is pegged at a CAGR of 9% till 2012-13 on account of a growing demand for tissue paper, tea bags, filter paper, light weight online coated paper and medical grade coated paper.
As per CRISIL estimates, the domestic prices of paper are expected to increase in 2011-12. The manufacturers are increasing capacity significantly, adding about1.5 to 2 million tons between 2008 and 2012, most of which are in the writing and printing segment. Paperboard prices are likely to increase in the coming year by 10-12%, owing to lower capacity additions and higher demand growth.