The Indian Paper Industry accounts for about 2.6% of the world’s production and is positive over the coming years. The growth is expected to be driven by the rising demand for paper products, which is majorly supported by various government education programmes. India?s per capita consumption of paper is just around 5 kg, one of the lowest in the world whereas for USA, it is around 320 kg and 30 kg in China. It is said, an increase of 1 kg in per capita consumption will lead to a demand of 1 million tonnes of paper products. There are vast demands in the area of tea bags, filer paper, tissue paper, medical-grade coated paper, lightweight online coated paper, etc. This denotes a huge potential. However, the industry is facing challenge to adopt environment friendly technology and to practice conservation measures. Its capacity utilization is also wavering around 80% due to old technology.