India's expanding timber market offers new opportunities for NZ exporters

India's growing demand for higher-value timber products is creating new opportunities for New Zealand's forestry sector, with exports of forestry and wood products to the country having more than doubled since 2024, according to insights shared by New Zealand Trade and Enterprise (NZTE).

The government trade agency says New Zealand radiata pine has traditionally been exported to India mainly as logs, where it is processed into sawn timber and wooden packaging such as crates and cases. However, the market is evolving as timber gains wider acceptance as a construction material rather than simply a commodity.

New Zealand's forestry and wood exports to India currently attract tariffs ranging from 5.5% to 11%, depending on the product. Once the New Zealand-India Free Trade Agreement comes into force, more than 95% of New Zealand forestry and wood products are said to enter India tariff-free.

Demand shifting towards higher-value timber

NZTE says India's timber market is moving away from lower-value applications such as packaging and pallets towards engineered wood products and other higher-value uses.

The country's construction sector is increasingly adopting timber, supported by changing building regulations, state-level policies, and a growing network of suppliers, architects and builders.

Rapid urbanisation and continued housing development are also driving demand for wood products. Growth in factory-made furniture and wood manufacturing is adding further momentum, while increasing awareness of engineered wood products is strengthening timber's position as a viable construction material.

Positioning New Zealand wood for the Indian market

To take advantage of these opportunities, NZTE encourages exporters to showcase the value of New Zealand radiata pine through higher-value products that are already seasoned, graded and prepared for structural and construction applications.

Products highlighted include seasoned timber, graded timber, ready-to-use timber, structural-grade materials, engineered wood products and finished components.

The agency notes there is still limited awareness in India of how radiata pine can be used effectively, making education an important part of market development.

Educating buyers and industry professionals

According to NZTE, timber in India is often traded as a commodity rather than selected for its performance or design characteristics. Imports account for only about 10% of India's timber requirements, with around 80% of those imports arriving as logs and 20% as lumber.

The agency says New Zealand exporters should demonstrate how radiata pine can be used across a wide range of building applications through staining and finishing techniques. It recommends promoting engineered wood components, structural timber and finished construction materials while working closely with architects, designers and structural engineers.

NZTE also suggests conducting seminars, technical workshops, training programmes and engaging with educational institutions to improve understanding of radiata pine and engineered timber products.

Sustainability an increasingly important selling point

Environmental considerations are becoming more significant in India's construction industry, both in relation to timber availability and forest harvesting practices.

NZTE says exporters should highlight New Zealand's sustainable forest management practices to address these concerns while also promoting timber's aesthetic appeal and its contribution to more sustainable building solutions.

Challenges exporters should consider

While India presents significant opportunities, NZTE says exporters must also understand the complexity of the market.

Building practices, product requirements and customer expectations differ across India's states and cities, meaning there is no single standard for product sizes, although greater standardisation is gradually emerging. The agency recommends maintaining close engagement with buyers to understand local requirements before supplying products.

NZTE also stresses the importance of building long-term relationships, saying Indian buyers value sustained partnerships over price alone. It advises exporters to develop strong connections with buyers, distributors and manufacturers across different regions.

Rather than focusing solely on sales, the agency encourages New Zealand businesses to pursue partnerships with Indian companies through technical collaborations, knowledge sharing or even equity investments in Indian timber businesses.

Addressing durability concerns

Durability and termite resistance remain key concerns for Indian buyers.

NZTE recommends ensuring timber is properly dried and seasoned, as wet wood is more susceptible to termite attacks. It also points to good construction practices, including protecting timber from soil and water contact, to improve long-term performance.

The agency notes that timber treatment technologies are already available in India, with treatment decisions depending on the intended application and site conditions. It encourages exporters to discuss termite management strategies with prospective Indian partners.

Key growth opportunities

NZTE identifies several areas with strong growth potential for New Zealand wood products, including:

- Doors and window frames.
- Engineered timber and structural timber solutions, including glulam and long-span construction systems.
- Building and construction projects, including educational facilities, hotels and resorts, clubhouses, residential housing, lifestyle properties and interior finishes.