The packaging industry in India has emerged as a key driver of innovation and value creation across manufacturing sectors, particularly in FMCG, agriculture, and food processing. As of September 2024, India became the third-largest packaging market globally, surpassing Japan, with the industry exceeding Rs. 7,36,246 crore (US$ 86 billion). Packaging now ranks as the fifth-largest sector of the Indian economy, expanding rapidly at 22-25% annually. This growth is fuelled by rising middle-class consumption, the boom in e-commerce, improvements in supply chains, and an increasing emphasis on food safety and quality. India’s food processing sector is adopting smart and innovative packaging, boosting food safety and positioning the country as a global hub for packaging materials.
On August 10, 2026, FSSAI notified new packaging regulations for pan masala, permitting plastic-free paper, paperboard, cellulose, tin and glass, strengthening India’s shift toward sustainable and plastic-free packaging solutions.
On July 14, 2026, the government issued guidelines under the Rs. 25,060-crore export promotion mission to support branding and packaging strategies, international-standard design solutions and promotional campaigns, strengthening India’s packaging capabilities and enhancing global visibility of Indian products.
On July 10, 2026, India’s paper industry continued to grow despite digitalisation and declining newspaper circulation, supported by robust packaging demand. Rising requirements for paper-based packaging are offsetting traditional paper-use declines, keeping the sector vibrant and economically viable.
On June 5, 2026, McKinsey highlighted AI-led “site sprints” as a new cost-optimization approach for India’s paper and packaging sector, integrating fiber, energy, procurement and operations. The approach can reduce costs by up to 20%, strengthening competitiveness and supporting sustained industry efficiency.
During FY26, India’s paper, paperboard and newsprint trade remained strong, with imports reaching 2,552.8 thousand tonnes and exports standing at 1,536.5 thousand tonnes across major grades, including writing and printing paper, kraft paper, coated paper and newsprint. The trade pattern reflects continued demand from packaging, printing and tissue segments, supported by growth in manufacturing, consumer goods and e-commerce activities. Among the major product categories, paper and paperboard coated on one or both sides (HS 4810) accounted for the largest share of imports at 917.3 thousand tonnes, followed by newsprint (HS 4801) at 557.3 thousand tonnes and uncoated kraft paper and paperboard (HS 4804) at 472.7 thousand tonnes. On the export front, coated paper and paperboard (HS 4810) remained the leading category with 625.7 thousand tonnes, followed by uncoated paper and paperboard for writing and printing (HS 4802) at 398.4 thousand tonnes and other uncoated paper and paperboard (HS 4805) at 251.9 thousand tonnes.
The strong export performance of value-added paper grades and sustained import demand for specialised paper products highlight the sector’s expanding integration with global markets and its growing role in supporting India’s packaging and printing ecosystem.
A notable feature of India’s paper industry is its reliance on sustainable raw materials. Around 74-76% of production in 2024-25 came from recovered paper and recycled fibre, 18-20% from wood and bamboo, and 6-8% from agro residues like bagasse and wheat straw. This shift aligns with the country’s growing green packaging market, projected to expand at a CAGR of 7.24% during 2023-28.
Technology adoption is also shaping the sector. Smart packaging solutions, including RFID, NFC, and QR codes, are increasingly being used to enhance product authentication and supply chain efficiency. Flexible packaging, driven by strong demand from the FMCG sector, is expected to expand by Rs. 1,35,642 crore (US$ 15.6 billion) during 2024-28, growing at a CAGR of 12.7%.
India’s packaging sector is also highly entrepreneurial, with over 22,000 packaging units, of which 85% are small and medium enterprises. The government’s supportive policies, including 100% FDI under the automatic route, are further boosting growth. Cumulative FDI inflows stood at Rs. 10,783.60 crore (US$ 1,813.89 million) in the Paper and Pulp (including paper) sector between April 2000-March 2026. In the Union Budget 2026-27, the government has allocated Rs. 12.2 lakh crore (US$ 139.75 billion) towards capital expenditure, reinforcing infrastructure-led growth and supporting demand for packaging materials across FMCG, pharmaceuticals, and e-commerce sectors.
According to a Brickwork Ratings report, India produces around 5% of global paper and ranks 15th worldwide, with demand expected to reach nearly 30 million tonnes by 2027, driven by packaging, e-commerce, FMCG, and education. Despite relatively low per capita consumption of 16 kg compared to the global average of 57 kg, the sector offers strong growth potential supported by rising literacy, expanding retail, and increasing preference for sustainable paper-based packaging.
In April 2026, FSSAI proposed amendments to its Packaging Regulations, 2018, encouraging the use of eco-friendly materials such as paper, paperboard and cellulose for pan masala packaging.
In April 2026, Surya Global Flexifilms partnered with SAP and SAVIC to implement SAP S/4HANA RISE, accelerating its transition towards a digitally integrated and intelligent manufacturing ecosystem.
In March 2026, EPL Limited announced its merger with Indovida, creating a diversified packaging platform valued at approximately Rs. 18,400 crore (US$ 2.0 billion) with annual revenues of around Rs. 9,200 crore (US$ 1.0 billion).
In January 2026, the Union Cabinet approved a Rs. 1,788 crore (US$ 204.8 million) project to establish a new banknote paper production line in Narmadapuram to strengthen domestic manufacturing of high-security paper.
In December 2025, SIG commenced full operations at its first aseptic carton manufacturing plant in Ahmedabad, Gujarat, strengthening its presence in India’s dairy and beverage packaging market and supporting regional exports.
PAPEXPO 2025, India’s first dedicated paper industry exhibition, was held from June 6–8, 2025, at HITEX Hyderabad, bringing together over 100 exhibitors and 15,000+ visitors across the paper, packaging, printing, and recycling value chain.
February 2025 - Tetra Pak: Introduced packaging with 5% ISCC PLUS certified recycled polymers, aligning with April 2025 plastic-waste compliance rules.
January 2025 - Huhtamaki India: Hosted 2nd Think Circle forum with CII to accelerate design-for-recycling standards for flexible packaging.
January 2025 - Canpac Trends: Acquired Saptagiri Packagings, adding blister-backer cards and a Silvassa plant to strengthen western-India operations.
Oji India Packaging Pvt Ltd inaugurated its fifth facility in the country at Sri City in Andhra Pradesh. The factory will produce corrugated boxes and packaging accessories and employ approximately 300 people in the region.
The Food and Grocery market contributes almost 70% of the total retail sales. Departmental retail stores in the urban food market and unit packaging n in the rural food markets are key drivers of flexible packaging in the country.
India’s paper and packaging industry is poised for strong growth, supported by rising urbanisation, e-commerce expansion, and increasing demand from food processing and FMCG sectors. Sustainability is becoming a key driver, with recycled fibre already accounting for nearly three-fourths of paper production and the green packaging market projected to grow at 7.24% CAGR through 2023-2028. Government support through Make in India, MSME-focused budgetary measures, and 100% FDI are spurring investment, while innovations such as smart packaging with RFID and QR codes are enhancing efficiency and consumer engagement. Despite challenges like raw material volatility and import dependence for specialty paper, India’s emergence as the world’s third-largest packaging market underlines its potential as a global growth hub.
