Promotion of Plywood Industry in India

Subsequent to the announcement of Industrial Policy by Government of India in 1991, most industries are now delicensed except for four sectors [cigars and cigarettes of tobacco and manufactured tobacco substitutes, electronic aerospace and defence equipment, industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and matches and hazardous chemicals]. In all other sectors entrepreneurs are free to setup industry in any part of the country.

There are no specific schemes to promote the plywood industry. However, the Department for Promotion of Industry and Internal Trade under Ministry of Commerce & Industry has notified North East Industrial Development Scheme (NEIDS), 2017.This scheme is meant for granting incentives to new industrial units established in North–East States which also includes plywood industry. Industrial Development Scheme (IDS) also exists for Himalayan States namely Jammu & Kashmir, Himachal Pradesh and Uttarakhand. Under the scheme incentives are provided to all eligible new and existing units and for their substantial expansion located anywhere in Himalayan states.

Good & Services Tax (GST) on plywood has already been reduced from 28% to 18% in November, 2017 on the recommendation of GST Council for promoting the industry.

FSC Certification for plywood in India will be an added advantage for plywood manufacturers as well, as FSC Certification in India is gaining prominence.