Lok Sabha Question No. 1319 (UNSTARRED), answered on 2024-12-03
Subject: Promotion of Plywood Industry
Ministry: COMMERCE AND INDUSTRY
Asked by: Ms Iqra Choudhary

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1319.

TO BE ANSWERED ON TUESDAY, THE 03 RD  DECEMBER, 2024.

## PROMOTION OF PLYWOOD INDUSTRY

## 1319.  MS IQRA CHOUDHARY:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has any specific schemes or policies to promote the plywood industry in the country;
- (b) whether the Government has any existing proposals to set up industrial zones to streamline the production, marketing, etc. of plywood and allied industries in the State of Uttar Pradesh; and
- (c) the initiatives taken by the Government to boost the export of plywood from the country and the quantum of plywood exported since 2019?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

The Government has undertaken various initiatives to promote Indian industries including plywood industry to facilitate investment, foster innovation, build best in class infrastructure, and make India a hub for manufacturing,  design, and include  the  introduction  of  Goods  and Services Tax, reduction in corporate tax, improving ease of doing business, Foreign  Direct  Investment  (FDI)  policy  reforms,  measures  for  reduction  in compliance burden, measures to boost domestic manufacturing through public procurement  orders,  Phased  Manufacturing  Programme  (PMP)  and  QCOs (Quality Control Orders), to name a few. To attract more FDI in various sectors including plywood, the Government has also put in place an investor friendly FDI policy, wherein most of the sectors, except certain strategically important

(a) & (b): innovation.  These  initiatives inter-alia sectors, are open for 100% FDI under the automatic route.

The Government, under the National Industrial Corridor Development Programme, is establishing integrated industrial corridors with state-of-the-art facilities. The industries, stand to benefit from improved connectivity, access to modern industrial clusters, and optimised operational costs, fostering innovation and sustainable growth across sectors.

Further,  in  order  to  promote  the  Indian  Plywood  industry  and  enhance  the quality of production, the Government of India has notified the 'Plywood and Wooden flush door shutters (Quality Control) Order, 2024' on 15 th  March 2024 (may be seen at Annexure).

- (c): The exporters of Plywood (under HS 4412) are eligible to avail benefit under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme at rate of 0.5% of the Free on Board (FoB) Value.

As a result of steps taken by the Government, there has been increase in exports  of  Plywood  from  India  in  the  Financial  Year  (F.Y.)  2023-24  in comparison to F.Y. 2018-19. Data is as under:

| HS Code                                                      | Financial Year   |   Exports Value (in US $Mn) |
|--------------------------------------------------------------|------------------|-----------------------------|
| HS 4412- Plywood, Veneered Panels and similar Laminated Wood | 2018-2019        |                       32.28 |
| HS 4412- Plywood, Veneered Panels and similar Laminated Wood | 2019-2020        |                       33.97 |
| HS 4412- Plywood, Veneered Panels and similar Laminated Wood | 2020-2021        |                       37.56 |
| HS 4412- Plywood, Veneered Panels and similar Laminated Wood | 2021-2022        |                       71.92 |
| HS 4412- Plywood, Veneered Panels and similar Laminated Wood | 2022-2023        |                       75.26 |
| HS 4412- Plywood, Veneered Panels and similar Laminated Wood | 2023-2024        |                       56.99 |

(Source: https://tradestat.commerce.gov.in/eidb/default.asp).

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 1319 FOR ANSWER ON 03.11.2024.

## [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SECTION 3, SUB-SECTION (II)]

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY (DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE) ORDER

## New Delhi, the   15 th  March, 2024

S.O.-------(E).In  exercise of the  powers conferred by section 16 read with section 17 and sub-section (3) of section 25 of the Bureau of Indian Standards Act, 2016  (11  of  2016)  and  in  supersession  of  the  Plywood  and  Wooden  flush  door shutters (Quality Control) Order, 2023, except as respects things done or omitted to be done before such supersession, the Central Government, is of the opinion that it is necessary or expedient so to do in the public interest, hereby makes the following order, namely:1. Short title and commencement. (1) This order may be called the Plywood and Wooden flush door shutters (Quality Control) Order, 2024. (2) It shall come into force with effect from the 28 th  February, 2025: Provided that in respect of small enterprise, as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), it shall come into force with effect from the 28 th  May,2025: Provided further that in respect of micro enterprises, as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), it shall come into force with effect from the 28 th  August,2025. Goods or articles specified in column (1) of the Table shall conform to the corresponding Indian Standard specified in column (2) of the Table and shall bear the Standard Mark under a licence from the Bureau as  per  Scheme-1  of  Schedule-II  of  the  Bureau  of  Indian  Standards  (Conformity

2. Compulsory use of Standard Marks.Assessment) Regulations, 2018:

Provided  that  nothing  in  this  order  shall  apply  to  goods  or  articles  manufactured domestically meant for export.

3. Certification and enforcing authority.The Bureau shall be the certifying and enforcing authority for the goods or articles specified in column (1) of the Table.
4. Penalty for contravention. Any person who contravenes the provisions of this order shall be punishable under the provisions of the Bureau of Indian Standards Act, 2016.

TABLE

| Goods or                               | articlesIndian Standard   | Title of Indian Standard                                                                                                                           |
|----------------------------------------|---------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)                                    | (2)                       | (3)                                                                                                                                                |
| Plywood and Wooden flush door shutters | 303:1989                  | Plywood for general purposes                                                                                                                       |
| Plywood and Wooden flush door shutters | 2202 (Part 1):1999        | Wooden flush door shutters (solid core type) - Plywood face panels                                                                                 |
| Plywood and Wooden flush door shutters | 710:2010                  | Marine plywood                                                                                                                                     |
| Plywood and Wooden flush door shutters | 5509:2021                 | Fire retardant plywood                                                                                                                             |
| Plywood and Wooden flush door shutters | 1328:1996                 | Veneered decorative plywood                                                                                                                        |
| Plywood and Wooden flush door shutters | 2191 (Part 2):2022        | Wooden flush door shutters (cellular and hollow core type) - Particle board and hardboard face panels ,                                            |
| Plywood and Wooden flush door shutters | 2191 (Part 1):2022        | Wooden flush door shutters (cellular and hollow core type) - Plywood face panels                                                                   |
| Plywood and Wooden flush door shutters | 2202(Part 2): 2022        | Wooden Flush Door Shutters (Solid core type)- Particle Board, High Density Fibre Board, Medium Density Fibre Board and Fibre Hardboard Face Panels |
| Plywood and Wooden flush door shutters | 4990: 2011                | Plywood for concrete shuttering works - Specification                                                                                              |
| Plywood and Wooden flush door shutters | 10701: 2012               | Structural plywood - Specification                                                                                                                 |

Note.-  For  the  purposes  of  this  Table,  the  latest  version  of  Indian  Standards including the amendments thereof, as notified by the Bureau from time to time shall apply.

[File No. P-14031/9/2023-CI]

(Sanjiv) Joint Secretary to the Government of India

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