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Ongoing West Asia crisis likely to have significant impact on Indian paper industry: IPMA
Mar-13-2026

The Indian Paper Manufacture Association (IPMA) has said that the ongoing geopolitical tensions in West Asia is likely to have a significant impact on Indian paper industry, creating various challenges, such as a rise in energy costs and a potential disruption in export markets, which will directly impact production costs for Indian paper mills.  

It noted that West Asia is a key export market for India, as the country exported about $980 million worth of paper and paperboard in FY25, of which nearly $290 million (close to 30 per cent) was shipped to West Asian markets. The exports primarily consist of uncoated writing and printing paper, coated paper and paperboard, and kraft paper. It said Paper Mills are facing problems in obtaining chemical supplies used in the manufacturing process, like hydrogen peroxide and binders, and downstream industries are likewise finding it difficult to manage their operations. 

IPMA also expressed significant concern that geopolitical instability in West Asia will lead to trade diversion by export-oriented paper-producing nations like China and Indonesia, which also rely heavily on West Asian markets. It said they may redirect surplus inventories to India as their exports to the region will also be affected. It said this could lead to an increase in imports in India at predatory prices, intensifying pressure on domestic manufacturers.  


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