As one from the woodworking industry, I have been privileged to witness the evolution of the woodworking industry from 1992 to the present day. The changes that we have seen in this field have been significant and have had a profound impact on the way we work, design, and produce wood-based products.
Back in 1992, the woodworking industry was largely driven by traditional craftsmanship, with hand tools and manual labor being the primary means of production. The use of machines was limited, and there were few automated systems in place. Only solid wood was used in furniture manufacturing. Woodworking was seen as a craft, and the value of a finished product was largely determined by the skill and expertise of the craftsman. During the period from 1990 to the present, the woodworking industry in India has undergone significant changes. One of the most notable changes during this time was the liberalization and Globalization of the Indian economy in 1991. This led to a reduction in importexport duties and opened up new opportunities for Indian businesses.
On 24 July 1991, Manmohan Singh presented the budget where he laid out a new trade policy oriented towards promoting exports and removing import controls. Specifically, he proposed limiting tariff rates to no more than 150 percent while also lowering rates across the board, reducing excise duties, and abolishing export subsidies. This not only increased foreign investors to set up manufacturing units in India but also paved a way for new businesses to emerge in the Indian market. One such industry emergence was amongst the woodworking community.
In 1992, as a reflection of its premier position in training for Mechanical Wood Industries Technology as a center of excellence, the name of the Institute - Indian Plywood Manufacturers’ Research Association (IPMRA) was changed to Indian Plywood Industries Research and Training Institute. This helped the woodworking industry in identifying and use of new wood species in furniture manufacturing. Processing of rubber wood and its use for furniture manufacturing became prominent, especially in the Tamil Nadu and Kerala regions alongside the use of some modern machinery.
In 1999, the Indian government also introduced a series of policies aimed at promoting the growth of the woodworking industry. This included the Technology Upgradation Fund Scheme (TUFS), which provided financial assistance to businesses looking to upgrade their equipment and technology. This led a way for the use of plywood, particle boards, and MDF boards in panel wood processing from the 2000s.
As the industry progressed, another major trend that emerged is the use of digital technologies in woodworking. This includes everything from the use of computer numerical control (CNC) technology and CAD software to the incorporation of sensors and internet of things (IoT) devices into woodworking machinery. These innovations allowed for greater precision and efficiency in woodworking and made it possible to create more customized and personalized wood products with more complex and intricate designs. The woodworking industry became more accessible to a wider range of people, and the demand for wood-based products grew rapidly while helping in increased efficiency and reduce waste.
One of the most significant changes that we have seen in recent years is the increasing focus on sustainability and environmental responsibility. This is a trend that has been driven by consumer demand, as people have become more aware of the impact that their choices have on the environment. In response, many woodworking companies have begun to prioritize sustainability in their operations, using sustainable materials and adopting environmentally friendly practices. This includes the use of certified wood products, such as those certified by the Forest Stewardship Council (FSC), as well as the adoption of sustainable forestry practices.
The Indian government also provided incentives for the woodworking industry to expand its reach to international markets. In 2004, the government introduced the Foreign Trade Policy which provided various benefits such as duty drawbacks, duty exemptions, and other concessions for exports. This policy provided a much-needed boost to the woodworking industry and enabled it to compete with the global market.
Another milestone was the introduction of the Goods and Services Tax (GST) in 2017, which replaced a complex system of state and central taxes. This helped to simplify the taxation system and reduce the burden on businesses. The government has also launched several initiatives aimed at boosting the growth of the woodworking industry, such as the Make in India campaign, which aims to promote the manufacturing sector in India, and the National Skill Development Mission, which aims to provide training to workers in the woodworking industry.
The import-export duty changes also played a significant role in shaping the woodworking industry. The reduction of import duties on raw materials and machinery helped to reduce production costs, making the Indian woodworking industry more competitive. Similarly, the imposition of import duties on finished products helped to promote domestic manufacturing and reduce dependence on foreign imports.
Today, the Indian woodworking industry is a rapidly growing sector that contributes significantly to the country's economy. The industry has adopted modern technologies and practices to meet the growing demands of customers, both domestically and globally. The woodworking industry in India shows a positive CAGR growth year on year, driven by factors such as urbanization, rising disposable incomes, and the increasing demand for housing and furniture. The woodworking industry has come a long way since the 1990s, and it is clear that the changes we have seen are only the beginning. With new technologies and changing consumer demands, we can expect to see even more exciting developments in the years to come.
At Woodtech Consultants, we are proud to be a part of this dynamic and evolving industry. We have been at the forefront of many of these changes, and have worked hard to stay ahead of the curve when it comes to technology, sustainability, and innovation. As we look to the future, we are excited to see where the industry will go next, and we are committed to continuously pushing the boundaries of what is possible in woodworking. While the industry has undergone significant changes over the past few decades, the core values of craftsmanship, quality, and attention to detail remain as important as ever.
