1. Government Ads should boost domestic Newsprint 
2. Swadeshi, Atmanirbhar Bharath 
3. 
   Heavy dependence on imported newsprint
4. 
   
5. India consumes over 1.2 million metric tonnes (MT) of newsprint annually.
6. ~60% of this is imported, mainly from Russia, Canada, and Indonesia.
7. This reliance drains ~$380 million in foreign exchange annually, including $139 million from Russia alone.
8. Domestic production was just 36,273 MT in Dec 2024; output from April–Dec fell 5.5% year-on-year.
9. India’s installed capacity for newsprint is 1 million MT, but utilization is below 70%.

Link Government ad spend to domestic newsprint use

1. Print media ad spends hit ₹20,000 crore ($2.4 billion) in 2024, a powerful policy lever.
2. Central and state governments together spent hundreds of crores on print ads:
3. Centre allocated ₹1,089 crore for publicity in Budget 2024–25.
4. Odisha spent ₹344 crore on print ads (2022–25).
5. Delhi, West Bengal, and others made similar outlays.
6. A 30–40% redirection of imports (~200,000 MT/year) could go to Indian mills.

In a nation where the roar of printing presses still echoes the pulse of democracy, Prime Minister Narendra Modi's "Make in India" initiative continues to reshape industries. However, one sector lags behind: the newsprint market. Despite clarion calls for self-reliance, Indian newspapers and magazines consume over 1.2 million metric tonnes (MT) of newsprint annually, with nearly 60% imported from countries like Russia, Canada, Indonesia.  This reliance drains foreign exchange reserves and stifles local mills. A bold policy proposal is gaining traction: Central and state governments should direct their substantial advertising budgets exclusively to publications using Indian-made newsprint. Proponents argue this could ignite demand, create jobs, and align the print media with national self-sufficiency goals.

The idea, floated by industry watchers and echoing Modi's vision, taps into the symbiotic relationship between government and media. Governments pour billions into ads for schemes, elections, and public awareness—funds that could serve as a lever for domestic production. "It's a win-win," says Vijay Kumar, Secretary General of the Indian Newsprint Manufacturers' Association (INMA). "Newspapers get stable revenue, mills get orders, and farmers planting bamboo for pulp see real incentives materialize."

India's newsprint hunger is voracious. Monthly consumption hovers around 100,000 MT, fuelling dailies from the top national newspaper to regional vernacular papers. The sector's total market value reached $995 million in 2024, up 1.9% from the prior year, driven by resilient print readership in smaller cities. But production lags: Domestic output was just 36,273 MT in December 2024, with cumulative April-December figures down 5.5% year-on-year. This shortfall—estimated at 0.7 million MT annually—forces heavy imports. In 2024, India imported 657,000 MT, valued at roughly $380 million, with Russia alone supplying $139 million worth.

Cost dynamics further tilt the scales toward imports. Domestic newsprint averages $620 per MT, reflecting higher production expenses like energy and raw materials. Imported variants, often 42 GSM standard grade from Russian mills, land at $580 per MT after freight and duties— a 6% edge that publishers exploit amid thin margins. Malaysian suppliers, though smaller players, offer similar pricing around $590 per MT, bolstered by Southeast Asia's pulp abundance. "The $40-MT gap seems small, but it adds up to crores for large publishers," notes Manoj Singh, Vice President at Madison Communications. "Without incentives, why switch?"

Government advertising could bridge this chasm. Print media ad spends hit a record Rs 20,000 crore ($2.4 billion) in 2024, surpassing pre-pandemic levels and comprising 25% of total ad pie. The central government alone allocated Rs 1,089 crore for information and publicity in Budget 2024-25, much of it funneled to newspapers. States aren't far behind: Odisha spent Rs 380 crore on ads over three years (2022-25), with Rs 344 crore on print alone. Delhi and West Bengal disbursed hundreds of crores more in 2023-24. From 2019-24, the Centre released Rs 967 crore on print ads for awareness campaigns.

Tying these funds to domestic newsprint use could redirect 30-40% of imports—over 200,000 MT annually—back to Indian mills. "It would spike demand by 20%, stabilizing prices and utilization rates above 85%," predicts Umang Poddar of Poddar Global, a major importer turned advocate for localization. Mills like Emami Paper and JK Paper, which produce 40-45% of domestic supply, could ramp up, reducing the $25 million monthly import bill.

The ripple effects extend to employment and rural economies. The newsprint sub-sector alone sustains over one million direct and indirect jobs, from mill workers to logistics. Broader paper industry employs 500,000 directly and 1.5 million indirectly, contributing 1.6% to GDP. 

Boosting demand could add 50,000 jobs in pulp processing and milling, per INMA estimates. Upstream, bamboo—key for eco-friendly pulp—benefits most. India plants 25 million hectares of bamboo potential, but underutilization persists.

Government incentives already sweeten the deal. The National Bamboo Mission (NBM), revamped in 2018, offers 50% subsidies up to Rs 1 lakh ($1,200) per hectare for farmers. Madhya Pradesh provides 50% aid per plant (Rs 120 of Rs 240 cost), while Maharashtra's Rs 4,300 crore plan targets 2025-30 plantations. Telangana promotes bamboo for women self-help groups, blending sustainability with income. "These growers need assured markets," says Chhavi Jha of NITI Aayog. "Domestic newsprint demand would guarantee off-take, turning bamboo into 'green gold'."

Challenges loom, however. Domestic mills struggle for lighter GSM papers (below 45), vital for cost-conscious publishers experimenting with 39 GSM. Capacity is another bottleneck: Installed newsprint output is 1 million MT, but utilization dips below 70% due to imported competition. Geopolitical risks—Russia's supply via sanction-hit routes—add volatility, with freight up 20% in 2024. Publishers like DB Corp report newsprint costs at Rs 49,500 per MT in Q4 FY24, squeezing 10% of revenues.