Indian Economy Growth
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Indian economy has grown at a 7-8% rate in last 4 years. All the sector contributed in GDP growth, such as manufacturing, FMCG, services etc. Manufacturing and services industry contributed approximately 90% of the growth.
– A strong economy contributes to consumption of papers in all sectors – office, education and personal consumers.
Due to improving living standard and higher disposable incomes, the demand for branded high end paper and hygiene paper products has increased in last 3-4 years.
– The demand for upstream market of paper products, like, tissue paper, tea bags, filter paper, light weight coated paper, medical grade coated paper, etc., is picking up with the growth of economy. These developments are expected to give strong support to the paper industry.
Strong consumer demand for packaged goods is fueling high growth in industrial grades of paper & boards, largely led by growing disposable incomes and lifestyle changes.
The government has increased its focus on education and initiated several central and state-level programmes to increase the literacy rate.
Indian government started its flagship programme Sarva Shiksha Abhiyan (SSA) in 2001 to achieve the goal of Universalisation of elementary education.
– It aims to provide useful and relevant elementary education for all children in the 6 to 14 age group by 2010.
– In 2007-08, the central government has allocated INR106.7 billion for SSA programme, moreover, an equal amount would also be allocated by states government.
– Of total fund available, the government allocated INR6.1 billion (4.7% of total fund) and INR6.9 (4.1% of total fund) for textbook in 2005-06 and 2006-07 respectively.
An increasing expenditure on textbook offers a good opportunity for the companies.