With restrictions on single-use plastic, local shops, bakeries and D2C brands look for paper bags and eco-friendly packaging. A small unit can make bags and boxes in short runs, including custom printed orders.
Your costs depend mainly on whether you start with manual work or buy a semi-automatic machine, so get quotes from more than one supplier and line up a few buyers before you invest. Udyam registration helps with MSME benefits, and depending on your scale you may also need local trade and factory permissions.