The history of handmade paper dates back to 105 AD, with its origin in China. However, Indians hold the credit of having used paper from cellulose fibers during third century BC. The handmade paper industry that had flourished in India during the Mughal era gradually declined with the establishment of paper mills during the 18th and 19th centuries. Nevertheless, it is noteworthy that the art of handmade papermaking was revived under the inspiration of Mahatma Gandhi.

Today, the handmade paper industry has over 157 handmade paper working units all over the country. These produce around Rs 21 crore worth of papers, providing full time employment to around 10,000 persons in the rural areas. In contrast, there is a sharp decline of the industry in countries like Japan and European countries.

The handmade paper in India is produced mainly by recycling waste agro raw materials such as cotton rags, in the form of tailor cutting, hosiery cutting; and small quantities of waste paper. Other agro fibers like jute, straw, banana are also used to blend with the primary fibers for mottling effect etc.

Handmade papers have an elegant appeal and an exquisite surface for writing. Innumerable varieties for decorative wrapping purposes are now available. They come in appealing varieties, with small dried flowers and leaves, colored fiber etc., making them attractive. It has huge tensile, bursting, tearing and double fold strength as compared to mill paper and it does not turn brittle due to aging.

Among the many items made, products like deckle edged drawing stationary, carry bags from natural fibers account for over 400 crores worth exports to developed countries every year. With the technological developments, handmade paper despite its non-glazing appearance is ideally suited for four-color production on offset machine.