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India is known as one of the most populous countries in the world. Its economic
liberalisation occurred in 1991 allowed India to increase the high rate of GDP and became
a fast economy. The steadily growing middle-class has improved the local purchasing
power and developed the construction sector for housing and infrastructure. Significant
investments in these sectors have increased the demand for wood and wood products. As
such, the demand for plywood has grown in the domestic market and has opened an
opportunity for foreign investors and manufacturer countries to invest in the Indian
domestic market of plywood.
Despite the lack of information about Indian wood market, this research aims to
complement previous studies related to Indian wood products based on the use of a
descriptive and empirical research methods. The PEST analysis and an econometrical
demand model are used to provide an overall overview of the Indian plywood market at
local and global level; determine the potential drivers that impact the Indian demand for
imports of plywood; and propose the current challenges and opportunities for foreign and
Finnish investors to explore the plywood market in India.
As in previous studies related to demand models of wood products, this study confirms
that the demand for imports of plywood is positively related to consumer income (GDP per
capita) but negatively to price variables (Domestic price of plywood). However, the Indian
demand for plywood appears to be income elastic but price inelastic. Additionally, other
significant economic activity variables such as population density, economic openness and
unemployment were tested to determine the impact of significant cross-price elasticities
for products that show to be complements of plywood. Nevertheless, further modelling is
recommended for future studies related to wood products in India.

Keywords India, Plywood, Demand, Imports, Time-Series, Modelling, Econometrics,

List of tables-

Table no. Table name Page number

1A Global consumption of 36
plywood in year 1990-2014
1B Global consumption of 37
plywood by regions in year
1C Major consuming countries of 38
plywood in 1990-2015
1D Major producing countries of 39
plywood in 1990
1E Major producing countries of 40
tropical hardwood plywood
1F Major consuming countries of 41
tropical hardwood plywood
1G India’s population and its 42
annual growth rate 1992-2013
2 JB Test for normality of 44
logarithmic transformation of
the level series 1990-2015
3 ADF unit Root test for the 45
variables in level s 1990-2015
Table of figure-

Figure number Name of the figure Page no.

1 Exhibit constituents of 2
Indian plywood market
2 Exhibit constituents of 5
plywood industry size
3 Exhibit demand split and 8
nature of demand
4 Raw material usage in 10
indian plywood industry
5 Exhibit market share 11

6 Framework of study 20

7 Subjects and method of 25

analysis of study
8 Contribution of different 30
sectors in GDP growth
9 India’s GDP, annual growth 32
and forecast
10 India’s population and its 33
growth rate
11 Total housing stock in India 34
Table of contents-

Chapter Title Page no.

I Introduction 1
1.1CompanyProfile 2-10
1.2IntroductionoftheProject/work 11-14

II Project Details 15
2.1Literature Survey 16-17
2.2Objectives 18
2.3Methodology 19-28

III Data Tabulation, Analysis and Results 29-47

IV Findings of the Study 48-53

V Conclusion 55
5.1Conclusion 56
5.2Suggestions 57-59
5.3Recommendations 60-61

Bibliography/References 62