India's printing and packaging MSMEs ask the big question — The Noel D’Cunha Sunday Column

India's printing and packaging industry, driven by micro, small, and medium enterprises (MSMEs), is a vital economic engine.

As per IMARC Group's recent report, the industry is experiencing steady growth, with a market size of USD 35.5-billion in 2024 and projected to reach USD 45.9-billion by 2033 at a CAGR of 2.9%. This follows a recovery in 2022, when the industry achieved a production value of USD 2.3-billion and a growth rate of 10.7%, exceeding pre-pandemic levels. Globally, the printing market is expected to grow from USD 374.31-billion in 2024 to USD 443.56-billion by 2028 at a CAGR of 4.3%, with India ranking as the eighth-largest market in the Asia Pacific.

Profit margins improved to 13.7% in 2022, supported by digital printing and automation advancements. While industry costs rose by 10.7% in 2022, largely due to B2B spending (74.9% of total costs), productivity also increased, with turnover per employee rising by 10.6% and average salaries by 7.1%.

Additionally, the Indian Paper Manufacturers Association (IPMA) reported a 2024 turnover of INR 80,000-crore (USD 9.5-billion), expected to grow to INR 1-lakh-crore (USD 11.9-billion) by 2027 at a CAGR of approximately 7.5%. Which is why the ITC acquisition of Century Pulp and Paper makes so much sense. The paper business has been in a cyclical downturn for the last three to four years. A turn of the cycle will improve business metrics for the division as the deal has been done at the bottom of the cycle.

The other reason is, the new factories that are being built. In the past 12 month-cycle, PrintWeek has announced the birth of 37 factories.

More recently, TCPL Packaging opened a new facility in Chennai. During the factory launch, Akshay Kanoria of TCPL highlighted India's broader economic lag. "Vietnam has a population of about 100-million, which is less than the population of Maharashtra in West India, which stands at approximately 120-million. South India has a population of over 250-million."

TCPL's Chennai facility, focused on paperboard cartons, aims to tap this potential, serving southern India's rising demand and boosting exports. But for MSMEs to follow suit, they need support. Regulatory complexity—spanning environmental rules, labour laws, and taxes—stifles small firms. The shift to eco-friendly packaging, driven by global demand, requires capital many can't access. Most MSMEs operate as small, single-unit plants, missing economies of scale. This fragmentation leaves them vulnerable to larger competitors, both domestic and foreign. Skilled labour is scarce: India's workforce is vast, but expertise in advanced printing and packaging techniques is lacking. New labour codes, though passed, remain poorly implemented, leaving firms mired in compliance woes.

The government has taken steps. The "Print and Pack Tech Mission" provides MSMEs with modern machinery and training to boost competitiveness. Industry bodies like the All India Federation of Master Printers (AIFMP) and the Indian Printing, Packaging, and Allied Machinery Manufacturers' Association (IPAMA) advocate for tech adoption and skill development.

Much more needs to be done. A deregulation commission, as proposed by the Indian government, could slash redundant rules—simplifying environmental compliance for firms adopting green practices, for instance. Financial support must expand: the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) should offer more collateral-free loans, while tax breaks for energy-efficient machinery or subsidies for biodegradable materials could ease the sustainability shift. Training programs to upskill workers in digital printing and eco-friendly packaging would address the talent gap.

The stakes are high. With global demand for sustainable packaging soaring, India's MSMEs could lead—Maharashtra's export figures show what's possible. Quick commerce's growth, employing 4,00,000 and relying on MSMEs for 54% of its stock-keeping units, further highlights their potential.

But without reform, they'll be outpaced by Asian rivals.

Policy must match the moment – cut red tape, unlock capital, and empower these firms to scale. Only then can India seize its vast export potential and become a global hub for printing and packaging innovation.