A Comparative Study of the Global and Indian Timber Industries: Market Dynamics, Sustainability, and Trade Challenges
Abstract
This study provides a comprehensive comparative analysis of the global and Indian timber industries during the pivotal 2025-2026 transition period. As the global market surpasses $945 billion, it is increasingly defined by a shift toward "Mass Timber" and carbon-sequestering building solutions. In contrast, the Indian sector valued at approximately $32 billion is undergoing a radical formalization phase driven by the February 2026 Bureau of Indian Standards (BIS) Quality Control Orders. The methodology utilizes a multidisciplinary approach, combining IPCC-aligned biophysical carbon modelling with industrial market audits. Results indicate that while the Global North leads in engineered wood technology, India's unique agroforestry-based supply chain offers superior carbon sequestration rates, reaching up to 33.36 tonnes of CO2e/ha/yr. However, the research identifies a critical "Traceability Wall" posed by the EU Deforestation Regulation (EUDR). Because Indian timber is sourced from millions of fragmented smallholder farms, current compliance readiness for GPS-level geolocation remains below 10%. This study investigates the strategic evolution of the timber industry (2025-2026), specifically contrasting Global North structural innovations with India's emerging formalization. It concludes that by integrating digital supply chains with new BIS quality mandates, India can pivot from a trade deficit to a global leadership position in sustainable furniture exports and carbon credit generation.
Reference
Kuber Lamba. (2026). A Comparative Study of the Global and Indian Timber Industries: Market Dynamics, Sustainability, and Trade Challenges. Elsevier BV. https://doi.org/10.2139/ssrn.6763778
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