How India’s Packaging Industry is Powering the Economy

By – Shailesh Sheth, Chairman and Managing Director of Kris Flexipacks

As India strides toward becoming a $5 trillion economy, the packaging industry has emerged as a silent but powerful enabler of this transformation. Often seen as a support function, packaging today plays a strategic role in driving consumption, enabling exports, generating employment, and pushing sustainability goals.

A Growth Engine Across Sectors

From food and pharmaceuticals to electronics and e-commerce, packaging touches every sector. It ensures product protection, hygiene, and appeal, all critical in a consumption-driven economy. India’s packaging industry is growing at 12% annually, projected to reach USD 204 billion by 2025 -a fourfold jump from 2019.

With rising demand from Tier 2 and Tier 3 cities, this growth is no longer limited to urban centers. The boom in online retail and last-mile delivery has further accelerated the need for innovative packaging.

Job Creation and Skill Upskilling

The sector employs over 5 million people and is increasingly embracing technology. Automation, digital printing, and smart packaging are creating new job profiles — from packaging designers to sustainability analysts.

Institutes like the Indian Institute of Packaging are training a new generation of professionals who understand the interplay between material science, consumer behavior, and environmental regulations.

Boosting India’s Export Edge

Packaging is a vital component of India’s global trade aspirations. Good packaging enhances shelf appeal, prevents damage, and meets international compliance standards. Sectors like pharma, food processing, FMCG, and handicrafts rely heavily on high-quality packaging to compete in foreign markets.

Better packaging directly translates to fewer losses, longer shelf life, and improved brand image all of which make Indian products more export-ready.

What Lies Ahead

The packaging sector is evolving from a cost center to a strategic differentiator. With initiatives like Make in India, PLI schemes, and a focus on MSMEs, the ecosystem is poised for long-term impact.
However, challenges remain especially around recycling infrastructure, regulatory clarity, and consumer behavior change. A collaborative approach involving industry, policymakers, and academia will be essential to scale impact and ensure inclusive growth.