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Flickr Limited domestic supplies coupled with booming retail
furniture, handicraft and hospitality sectors are driving demand
for newer species. Exporters are also increasingly sourcing
imported species to meet certification requirements in export

markets.
India’s booming construction, housing, furniture and
handicrafts industries are increasingly relying on imported
forest products to expand output. The government estimates
51 percent of India’s population will be living in urban areas
by 2047 leading to a demand surge for furniture products.
India’s furniture market was valued at US$24 billion in
INDIA 2023 making it the fifth largest producer and fourth largest
A good monsoon boosts consumer spending consumer globally with an expected annualised growth rate

The 2025 India monsoon season experienced prolonged and of 11 percent from 2023-28.
above-average rainfall continuing into October, beyond its Wooden furniture is expected to remain at the core of
usual duration. The India Meteorological Department (IMD) home furnishing demand as rising incomes and demand
recorded eight percent more rainfall than average for the core for high quality and distinctive designs are forecast to grow.
June-September season. Dual income earning households, larger disposable incomes
India's monsoon rains significantly influence domestic and changing lifestyle trends among these consumers is
consumption, primarily by impacting the agricultural sector, driving growth for luxury and imported goods including luxury

rural incomes and food price stability. A good monsoon boosts furniture. Wealthy urban consumers are increasingly shopping
consumer spending while a weak one can dampen demand for goods online through various e-commerce sites.
across the economy.
A good monsoon leads to higher agricultural production Indian economy forecast to grow at 6.6% in 2025-26
and increased farm incomes. Since a large portion of the The IMF released its revised projections following the effects
Indian population (around 60%) depends on agriculture and of US tariffs across various economies and the subsequent
over half of the net sown area is rain-fed, the purchasing deals made between countries amid growing uncertainty.
power of millions of rural households increases with good rains. With the effects of tariffs lower than expected, the IMF
The monsoon drives consumer spending as higher rural projects global growth at 3.2 percent in 2025, while slowing

incomes directly translate into increased demand for goods to 3.1 percent the following year.
and services. This surge in spending benefits many sectors. The International Monetary Fund (IMF) has predicted that
India will continue to be one of the fastest-growing ‘emerging
Booming construction and furniture industries rely on market and developing economies’ in 2025-26, growing at a
imported timber rate of 6.6 percent according to the World Economic Outlook
A 2024 GAIN report says India’s annual import of logs, (WEO) report.
sawnwood and wood products increased from US$630 million This upward revision is attributed to strong economic

to US$2.3 billion over the past two decades with US capturing performance in the first quarter, which has more than offset
a significant share. the effects of increased US tariffs on Indian goods.