As India commemorated World Bamboo Day on September 18, 2025, the time has come to take stock of this unusual green powerhouse. How much has India harnessed this “green gold,” what has been achieved — and missed — and what steps must the government take, for the sector to fulfil its potential?
Bamboo – emerging applications and global market opportunities
Tradition places bamboo at the very heart of Indian rural life: scaffolding for construction, woven baskets and mats, robust furniture and musical instruments are but a few of bamboo’s time-honoured uses. But new, high-value applications are emerging, making a compelling economic argument.
India commands nearly 14 million hectares of bamboo reserves. When it comes to exports, we are third in the world. Compared to China (which enjoys a 38 per cent global share of bamboo exports), India commands only 14 per cent. Globally, the bamboo industry is projected to cross $90 billion by 2030. India can position itself as a serious player in this market.
Engineered bamboo panels, flooring and composites could become the backbone of India’s green construction industry, which itself is projected to reach $35–50 billion by the end of this decade. In the energy sector, every tonne of bamboo can yield 250–300 litres of ethanol, offering a credible pathway towards India’s lower dependence on crude oil imports. Bamboo is also finding use cases in “green” textiles, lauded for their softness and antibacterial qualities.
The ecological case is equally strong. Certain bamboo species can sequester up to 12 tonne of carbon per hectare annually, with a lifecycle capture potential of 400 tonne of CO₂ equivalent over 30 years. Bamboo-derived biochar yields of 300–350 kg per tonne of feedstock have been seen. In the North-East, bamboo has been used to build earthquake-resistant homes at 40 to 50 per cent lower cost than conventional housing, while providing livelihoods to tribal artisans and women-led groups.
The challenge lies not in potential but in policy and governance. India did take an important step in 2017 by amending the Indian Forest Act to declassify bamboo grown outside forests, freeing cultivators from restrictive transit and felling rules. The National Bamboo Mission and its inclusion in Atmanirbhar Bharat have also provided momentum. The exclusion of forest areas growing bamboo puts severe restrictions in bamboo development in the North East, which, while having large bamboo lands, is also largely covered under forest land. Transportation and logistics from the North-East to other areas have always been a challenge as well.
Assam has mandated at least 5 per cent of bamboo-based material in the construction of new public buildings. However, such mandates are rare. Consumer perception about bamboo products being a “poor man’s material” has also put limitations on the sector’s growth. R&D investments and capital availability are also major challenges.
Fragmented state-level implementation, underdeveloped processing infrastructure and limited private investment continue to constrain growth. India’s persistent paradox, exporting raw bamboo while importing higher-value products reflects the absence of a coherent value-chain strategy.
Recommendations
What is needed now is a decisive policy pivot.
India must create assured procurement corridors. More states need to follow the Assam model of mandatory procurement of bamboo. In addition, government must create market linkage for bamboo cultivators to private businesses, particularly in construction and carbon credits.
We must invest in research and design of ecosystems to promote innovation in engineered bamboo, bioenergy, and new consumer applications. We need improved varieties, nurseries with disease-free-planting-material and technical assistance. Restoring degraded land is another area wherein bamboo could play a significant role.
We need to develop processing clusters focused on Bamboo. The business has to move from small-scale-household-activities to large-scale-industrial-scale. This could be for engineering and construction, or for biofuel or other new applications. This has to be supported with capital. We need specialised investment schemes and subsidies to give this sector a serious thrust.
Policies must be harmonised across states to ensure consistent implementation of the 2017 reforms. The issue of bamboo lands in forest areas has to be brought up for debate and discussion. Most importantly, communities must be placed at the centre of this conversation.
Unless India elevates bamboo policy from peripheral to strategic, it will continue to export raw culms while importing value. This paradox has left a high-potential sector underutilised at a moment when the country needs precisely what bamboo can offer: climate-smart growth, rural empowerment and industrial leadership.
India stands at a crossroads. Bamboo can remain a peripheral commodity, or it can be elevated into a cornerstone of the country’s green economy. The difference lies not in availability but in ambition. If India chooses strategically and repositions bamboo as “green gold” it can capture a global opportunity, empower its rural workforce, and lead the world in building a sustainable, inclusive bamboo economy. The time to act is now, before another strategic resource slips quietly through our fingers.
(The author is Managing Director, Primus Partners)
Published on September 20, 2025
