Globalisation and its implications for the Indian forest sector

Globalisation of the forest sector is happening rapidly and these forces will substantially change the shape of the Indian forest sector between now and 2020. The paper demonstrates the development on a number of important globalisation factors. Fierce competition is foreseen with respect to land and biomass raw material between agriculture/bioenergy/forest industry in the future. In effect, we are seeing the convergence in the markets for food, fuel and fibre. The Indian forest industry is already today facing some of the highest wood and energy costs in the world and the costs are bound to increase due to escalating deficits. Globalisation will probably drive the Indian forest industry to import its raw material and invest in plantations abroad. A strategic choice for the Indian industry is between investing in India or abroad in the future. Current globalisation developments are pointing to investments abroad being the right option.