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The plywood industry is one of the fast-growing sectors in India. Wood is a natural resource, and its use for industrial purposes for producing plywood, veneer, and other derivative products is on the rise. The value of Indian plywood production increased from $2 billion in 2014 to $3.5 billion in 2018. The plywood industry has witnessed a surge in growth with increasing demand from end users as well as new entrants entering the segment. This article explores the impact of the plywood industry on the Indian economy, along with key drivers and challenges moving forward.
What is Plywood?
Plywood is derived from the term “plywood”, which refers to a type of wood panel consisting of multiple layers of wood bonded together. The primary raw material that goes into plywood is wood, which is processed and formed into panels of different thicknesses. Plywood is used in various industries, from furniture to construction. Plywood is a panel that is manufactured by gluing several layers of wood together to form a single sheet. It is widely used for various purposes, including furniture, doors and cabinets, as well as in the construction industry. The main types of plywood are as follows: • Particle board – Made of sawdust and is not a solid sheet of wood. The advantages of Particle board are that it is cheap, easy to work with, and can be used to make strong items like desks and bookshelves. But the disadvantages are that it is not as strong as solid wood and cannot be used for things that need to be moved around a lot. • Solid wood – A single sheet of wood that has not been pressed or glued together. The advantages of solid wood are that it is heavy and will last for a very long time. It is usually used for furniture and cabinets. The disadvantages are that it can be more expensive than other types of wood, and you must be careful when working with it because it can be damaged easily.
Economic Impact of the Plywood Industry in India
The plywood manufacturer industry in India has a strong positive impact on the Indian economy. The value chain of the plywood industry is long, with plywood mills sourcing raw materials from third-party vendors, such as log suppliers. The Indian plywood industry is predominantly dominated by domestic players and an estimated 95-96% of the plywood is consumed domestically. The Indian wood panels market is expected to hit US$ 4.58 billion by 2021 from US$ 2.17 billion in 2016, growing at a CAGR of 6.5% between 2017 and 2021. The growth of this sector is largely driven by the increasing demand from the construction sector due to rapid urbanization and rise in real estate investments. The plywood industry also serves as a major source of employment in India. The plywood industry is expected to generate employment opportunities for around 1.7 – 2.3 lakh people in the country by 2021. In addition, plywood manufacturers have created an additional demand for raw materials such as wood, veneer, and chemicals, which has positively impacted the Indian economy.
Challenges Facing the Indian Plywood Industry
Governing regulations – The plywood industry is regulated by the government in India, which means that there are certain rules and guidelines that must be followed by plywood manufacturers. Plywood manufacturers must follow certain quality standards and comply with the government’s regulations to ensure safety. Availability of raw materials – The availability of raw materials, such as wood and veneer, has been a challenge for the plywood industry. The Indian government has banned the import of raw materials to protect the country’s forests. This has affected the plywood industry, as it must now rely on internal sources for raw materials.
Plywood Uses
There are multiple uses for plywood, which include the following: – Plywood is used for furniture, cabinets, and floors. – Plywood is used for the construction of houses. – Plywood is used for making musical instruments such as guitars and violins. – Plywood makes decorative items such as wall panels, clocks, and picture frames. – Plywood is used for making wooden boards. – Plywood is used for making wooden boats. – Plywood is used for making wooden boxes. – Plywood is used for making wooden crates. – Plywood is used for making wooden furniture. – Plywood is used for making wooden toys. – Plywood is used for making wooden wall panels. – Plywood is used for making wooden pallets.
Conclusion
The plywood industry is one of the fast-growing sectors in India. Wood is a natural resource, and its use for industrial purposes for producing plywood, veneer, and other derivative products is on the rise. The value of Indian plywood production increased from $2 billion in 2014 to $3.5 billion in 2018. The plywood industry has witnessed a surge in growth with increasing demand from end users as well as new entrants entering the segment. The plywood industry strongly impacts the Indian economy as it creates employment opportunities and promotes the country’s natural resources. The growth of this sector is largely driven by the increasing demand from the construction sector due to rapid urbanization and rise in real estate investment. In addition, the rise in infrastructure development has also contributed to the increase in demand for plywood in the construction industry. Thus, plywood positively impacts the Indian economy as it increases demand for Indian wood boards.
