Global Competitiveness of the Indian Forest-based Industry — A Reality Check

Abstract

Until recently, India was a restricted market for wood products. The structural reforms initiated in the early 1990s coupled with a cautious and calibrated approach to external sector liberalization has led to a step-up in economic growth and, a ban on most domestic logging created a unique market opportunity for global forest based industries. The shortfall between demand and supply of timber could be met by the improved timber processing and marketing, which compete successfully against a range of substitute products. Given the fact that most forests and woodlots of the country are producing far below their potential, the situation calls not only for direct measures for enhancing forest productivity but also an immediate re-look at the indirect measures to protect the domestic growers both in forests and at markets.