The government of India is considering proposals to invest US$16 to $17 billion to boost domestic production of various consumer items, including furniture, air conditioners and its components, and leather footwear. This is to reduce import dependence and increase exports, other measures may include duty hikes, reported Times of India on 3rd of June.
Among the priority sectors that will be receiving support from the government, the furniture sector will receive one of the largest amount of investment amounting to US$10 to $11 billion to set up three to four clusters or hubs near ports, that are also close to the wood producing areas.
In recent years, India’s furniture market size is worth US$10 to $12 billion, with imports valued at US$1.5 to $2 billion. Over 50 per cent of imports come from China.
Duty hikes and a new forestry policy
Duty hikes on wood products are also been considered by the government, with long term solution for a forestry policy that supports the environment and the economy, and which has been successful so far in Vietnam.