Forest-based Exports in International Trade

It is widely acclaimed once again thac exports hold the key to the economic development of the less fortunate nations of the world. In fact. the Planning Commission has recommended that "efforts at export promotion will be much more rewarding if these are directed to items with a fast growing world demand ...... A reorientation of the production structure towards items with a rapidly expanding world market has to be another essential plank of a forward looking export strategy" (Planning Commission, 1973). Analyses are therefore undertaken to identify the extent to which forest-based exports qualify for being considered under the above recommendation. The results indicate that commodities have not only displayed very fast growth rates of volume, total value and unit value/price in world trade, but this may continue well into the future. Considering that India also seems to possess a comparative advantage in such products, intensification of forest-based exports appears to be a rational choice for the country.