Plywood forms the major segment of the wood based industry in the country. A large number of units are operating in the large, medium and small-scale sectors.

Plywood, Veneers of all types and other wood based products such as particle board, medium density fibre board have been delicensed vide Department of Industrial Policy & Promotion™s Press Note No.11 (1997 Series) dated the 17th July 1997. In terms of Press Note No. 9 (1998 Series) dated 27.8.98, issued by the Ministry of Industry, Department of Industrial Policy & Promotion, entrepreneurs who wish to obtain approval from the Government for setting up any wood based project should obtain prior clearance from the Ministry of Environment & Forests before submitting the applications to the Administrative Ministry/SIA and enclose a copy of “in principle approval given by the Ministry of Environment & Forests. However as per notification dated 27.01.2007 most of the wood items have been dereserved except wood furniture and fixtures.

As per the current Export & Import Policy, the principal raw material, viz., wood logs is freely importable under OGL.