Role of Forest-based Industry in relation to Indian Economy

Role of Forest-based Industry in relation to Indian Economy

Forest based industries play a vital role in the Indian economy, as they provide employment, income, and foreign exchange earnings to millions of people. Forest based industries include timber, paper, pulp, furniture, rubber, resin, lac, bamboo, and other minor forest products. These industries contribute to the conservation and sustainable management of forest resources, as well as to the development of rural and tribal areas. Forest based industries also have a positive impact on the environment, as they help in reducing greenhouse gas emissions, enhancing biodiversity, and maintaining ecological balance. According to the Ministry of Environment, Forest and Climate Change, the total value of forest products in India was Rs. 1.7 lakh crore inPreview

 2018-19, which accounted for about 1.1% of the GDP. Forest based industries also generated an export revenue of Rs. 23,447 crore in 2018-19, which was about 2.5% of the total merchandise exports. Forest based industries are thus an important sector of the Indian economy, and they need to be supported and promoted by the government and other stakeholders.

Role of Forest-based Industry in relation to Indian Economy

Forest based industries play a vital role in the Indian economy, as they provide employment, income, raw materials, and foreign exchange. According to the Ministry of Environment, Forest and Climate Change, forest based industries contributed about 1.29% of the gross value added (GVA) in 2019-20, and employed about 5.3 million people directly and indirectly. Some of the major forest based industries in India are paper and pulp, timber and plywood, furniture and handicrafts, bamboo and cane products, lac and shellac, resin and turpentine, and non-timber forest products such as honey, medicinal plants, gums, spices, etc. These industries depend on the availability and sustainability of forest resources, and also have an impact on the environment and biodiversity. Therefore, it is important to balance the economic benefits of forest based industries with the ecological and social costs of forest degradation and deforestation. The government of India has taken various measures to promote forest based industries while ensuring conservation and management of forest resources. Some of these measures include the National Forest Policy 1988, the Forest Conservation Act 1980, the National Bamboo Mission 2018, the Green Skill Development Programme 2017, etc. Forest based industries have a significant potential to contribute to the economic growth and development of India, as well as to the global efforts to combat climate change and biodiversity loss. However, they also face many challenges such as lack of infrastructure, technology, finance, skilled manpower, market access, quality standards, etc. Therefore, there is a need for more research and innovation, policy support, institutional coordination, public-private partnership, and stakeholder participation to enhance the productivity and competitiveness of forest based industries in India.