Reason one: Free Trade pacts and adverse impact on paper and furniture industry
- Free trade pact are becoming impediments in Make in India initiative, as certain sectors such as paper industry are feeling the heat of the cheap imports of key raw materials enabled by trade pacts especially with ASEAN.
- This is happening at a time when the country’s green laws bar paper manufacturers from taking up farm forestry projects for accessing the same raw materials indigenously.
- Similar problem for Wood-based industries which can add significantly to India’s GDP, employment potential, farmer incomes and greening India due to raw material shortage.
- Solution: Allowing commercial forestry on dry and wastelands, giving incentives to industry to develop forestry mechanisms and incentives for developing fallow land were the need of the hour.
to be updated