India's Green Gold: Exploring India's Bamboo Industry

Bamboo, often referred to as 'green gold,' is quietly pacing a sustainable journey towards a greener economy in India. In an application array that extends from construction to packaging, bamboo is a game-changer in global sustainability. With over 136 species of bamboos in approximately 13.96 million hectares of land, India is the second largest bamboo producer in the world. Bamboo is not just a natural resource—it is a symbol of culture, livelihood, and innovation. Now more than ever, the sustainable nature of bamboo demands attention and action to steer the planet towards better ecological solutions.

Bamboo acts as a forerunner in promoting economic and environmental benefits for India. According to Grand View Research, value of the Indian bamboo market is expected to increase at a compounded annual growth rate (CAGR) of 4.6% from Rs. 50,135 crore (US$ 5.8 billion) in 2022 to Rs. 71,745 crore (US$ 8.3 billion) by 2030.

Application across industries

Strength and versatility in construction

Bamboo is not just a type of grass; it is a multi-use resource for industries. It is often stronger than some types of steel such as aluminium. This positions bamboo as an alternative to steel in various applications, particularly construction, where its lightweight nature significantly reduces logistics costs associated with transportation and handling.

Sustainable infrastructure development

Bamboo is trusted as the optimal resource for developing sustainable infrastructures due to its rapid growth characteristics along with great carbon absorption abilities. Bengaluru Metro Rail Corporation Limited (BMRCL) is soon opening India's first bamboo metro station as part of its environmental sustainability agenda. This opens a new outlook and proves that bamboo is an integral part of the modern eco-friendly architecture.

An alternative to plastics

As a renewable resource, bamboo has the potential to be a sustainable alternative for plastics, especially in packing and single-use items. Government programmes such as the National Bamboo Mission also encourage bamboo production and help grow the sector.

Growth of bamboo furniture and packaging industries

Bamboo has great potential in sectors such as furniture and packaging in India. Already more than 15% of new furniture brands use bamboo designs. As per a report published by Ken Research, bamboo furniture exports from India stood at Rs. 2,500 crore (US$ 289.21 million) in 2023. On the other hand, sustainability trends in e-commerce are driving the packaging sector to change to bamboo-based materials.

Export Scenario

Source: Volza

Over 164 countries contribute to the global export of bamboo, with China being the largest exporter. As of July 17, 2024, China’s contribution of 382,502 export shipments attests to its significant market share of 38%. Following China, Vietnam emerges as a key player with 230,402 shipments, securing 23% market share. India makes a mark with its 143,285 shipments, translating to 14% market share.

Role of bamboo in Indian economy and rural livelihoods

Bamboo has much potential, both in terms of industrial and rural development in India. It also supports over two million artisans engaged in the bamboo economy, who harvest, process, and craft it into products such as baskets, mats, and handicrafts.

Government initiatives and rural development through bamboo

The Indian government has launched schemes such as National Bamboo Mission, and other state-level schemes for the cultivation of bamboo. India also aims to promote its bamboo-centric products, while creating opportunities for sustainable livelihoods through new channels, especially among rural women.

Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM), in partnership with the United States Agency for International Development (USAID’s) Industree Foundation, aims to empower one million rural women through bamboo farming and entrepreneurship.

Bamboo as an environmental and economic solution

Bamboo’s role in capturing carbon

There is no denying the environmental advantages of bamboo. One hectare of bamboo absorbs approximately 17 tonnes of carbon dioxide from the environment yearly, making bamboo forest an asset for carbon absorption.

A renewable resource

Use of bamboos can help reduce deforestation of slower growing trees. Bamboo can be harvested every three to five years, unlike slower growing trees. Additionally, it demands lesser quantity of water and can grow in diverse climates, making it a crop suitable for farmers in water-scarce areas.

Economic opportunities through state level initiatives

Bamboo provides significant economic opportunities. With growing worldwide demand for eco-friendly materials, the value of bamboo products are projected to expand.

There is a bamboo infrastructure boom in the country, with innovative projects such as bamboo bridges and bamboo crash barriers making a mark. Maharashtra's installation of the world's first 200-meter-long bamboo crash barrier on the Vani-Warora highway validates bamboo's potential in public infrastructure. Likewise, the world’s tallest bamboo tower in Bemetara, Chhattisgarh, symbolises the strength of bamboo and its viability for application on a big structural scale.

Maharashtra’s Atal Bamboo Samriddhi Yojna aims to incentivise bamboo cultivation by private and public sectors for use by rural entrepreneurs and market linkages. Madhya Pradesh is now combining bamboo cultivation with employment schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) by allotting self-help groups plantations to manage. Additionally, initiatives such as Assam’s Bamboo Industrial Park generate new jobs and bolster local economies.

Challenges

India has more area under bamboo cultivation than China, but systematic hurdles prevent the country from achieving its full potential.

• Unregulated processing techniques: Lack of regulated processing methods is one of the major obstacles for the bamboo business in India, which leads to uneven product quality. Small-scale manufacturers and artisans are most affected by this issue. Despite government initiatives, less than 30% of the bamboo-processing units in the country are currently mechanised, according to the Ministry of Agriculture data. This lack of standardisation hinders bamboo products from meeting international quality benchmarks, limiting export potential.
• Supply chain and transportation bottlenecks (especially in remote areas): Logistical bottlenecks along the supply chain of bamboo in India remain a challenge to the sector’s development. These conditions mainly arise in remote areas where transportation infrastructure is poor and underdeveloped. North-eastern states, which account for over 60% of India’s bamboo cultivation, find it difficult to transport bamboo to processing centres. Transporting bamboo in these areas costs up to 20% higher than other agricultural products, negatively impacting the profitability of local farmers.
• Harvesting hurdles: While reclassifying bamboo as grass in 2017 eliminated the restrictions on harvesting, persisting bureaucratic hurdles discourage industrialisation.
• Untapped potential: Although there are 136 bamboo species, only 15 are commercially viable. This, coupled with reliance on manual labour and traditional methods, has led to India producing low-value products like ‘agarbatti’ sticks, leaving high-value global markets untapped.

Strategic plans to overcome challenges

• Government policies (National Bamboo Mission, agricultural subsidies): The restructured National Bamboo Mission (NBM), launched in 2018, aims to boost the bamboo sector through a cluster-based hub-and-spoke model. It provides technical support and streamline operations to enhance farmer incomes and promote industrial activity. Farmers receive a 50% subsidy of Rs. 1.0 lakh (US$ 1,155) per hectare, while government agencies and entrepreneurs benefit from 100% subsidies for bamboo plantations and product development units, driving innovation and sustainable growth. The mission is expected to create employment for over eight million people in rural sectors. Subsidies further incentivise bamboo cultivation by reducing input costs for farmers.
• FMC's bamboo vision: The Foundation for Micro, Small and Medium Entrepreneurs Cluster (FMC) has developed a 10-year strategic plan for India's growth, finalising it in 2023. The plan centres on activities to improve productivity; value-creating of the bamboo products like engineered bamboos, biomass gas, and product markets arranged for the producer and craftsman. This plan, if implemented properly, will propel India’s bamboo sector and make it as an integral part of the international bamboo community which is currently led by China, holding 50% share of the world bamboo market. The bamboo sector’s annual output stood at Rs. 12,507 crore (US$ 1.45 billion) in FY21, employing 10.3 lakh people. By FY33, this is projected to rise to Rs. 52,246 crore (US$ 6.04 billion), reflecting a CAGR of 12.65% per year, and aims at creating 30.37 lakh jobs, with 50% of the growth driven by women employment.

A bamboo-based future

India’s bamboo industry has enormous potential, with a vision to achieve Rs. 52,246 crore (US$ 6.04 billion) by 2033 as per the industry’s 10-year growth plan. As the country innovates and invests in sustainable practices, bamboo will be the key to transforming India’s economic and environmental landscape and becoming a global leader in bamboo manufacturing and technology. Along with state-level initiatives and government support, the bamboo market is set to grow as India emphasises on the ‘Make in India’ initiative. Indians are brimming with ideas and are increasingly adopting a more conservative, sustainable, and renewable future. This aligns with India’s commitment to empowering women and creating an inclusive environment, encouraging everyone to take charge and drive change themselves.