India’s forests as the roots of a sustainable bioeconomy

With forest and tree cover spanning 25.17% of India’s geographical area, according to the India State of Forest Report 2023, they are integral to its ecological security and rural livelihoods. They support millions of people, sustain agriculture and provide renewable resources that can drive a new generation of bio-based industries. As India advances towards climate-resilient development and a circular economy, forests and tree-based systems are emerging as key pillars of the bioeconomy.

The theme of this year’s International Day of Forests (March 21) — “Forests and Economies” — is timely and underscores the global importance of forests.

#### Sustaining livelihoods and economies

According to the Global Forest Resources Assessment 2020 by the Food and Agriculture Organization of the United Nations (FAO), forests cover about 31% of the world’s land area and support the livelihoods of more than 1.6 billion people.

In India, forests sustain millions of livelihoods, particularly among tribal and forest-dependent communities. Forest products such as wood, timber, bamboo, honey, medicinal plants, gums, resins, tendu leaves, mahua flowers and wild foods provide vital sources of income and nutrition. India’s bamboo resources, often referred to as “green gold”, are also supporting growing industries ranging from handicrafts to construction and other bio-based materials, while also providing alternatives for wood and timber.

Forests provide essential ecosystem services and are home to millions of species of biodiversity. They play a critical role in supporting agriculture and economic stability. By sustaining watersheds and recharging aquifers, forests help maintain reliable water supplies across seasons. They also improve soil fertility and support pollinators — services that are vital for agricultural productivity, climate resilience and long-term food security.

Agroforestry — integrating trees with crops and livestock—offers one of the effective pathways for strengthening forest-based economies. Tree-based farming improves soil health, enhances biodiversity and diversifies farmers’ incomes through timber, fruits, fodder and biomass. It also provides an important safety net for farmers during periods of crop failure.

Across India, traditional and indigenous farming systems demonstrate how forests, biodiversity and agriculture can coexist productively. Strengthening these systems with innovation, sustainable value chains and improved market access can unlock new economic opportunities for rural communities.

#### The FAO’s role

The FAO works with governments and partners worldwide to promote sustainable forest management and forest-based livelihoods.

In India, the FAO supports agroecology, agroforestry and community-based natural resource management through projects funded by the Global Environment Facility (GEF), helping farmers adopt practices that protect biodiversity while improving incomes.

Under the programme supported by the Green Climate Fund (GCF), the FAO will promote agroforestry models designed specifically for small and marginal farmers, women farmers, and tribal and other vulnerable communities in India. Recognising that the impacts of climate change fall disproportionately on these groups, the programme identifies suitable agroforestry models as a key adaptation strategy. To ensure economic viability, the programme undertakes rigorous cost-benefit analysis and value chain studies for both timber- and non-timber-based agroforestry systems, so that tree-based farming becomes a practical and sustainable livelihood option for small and marginal farmers, tribal households, women farmers and other vulnerable communities.

Scaling up agroforestry also requires reliable nursery systems and quality planting material. Recognising this, the FAO supported the Ministry of Agriculture and Farmers’ Welfare, Government of India, in developing protocols for certified Quality Planting Material (QPM) for production and nursery certification for timber and non-timber agroforestry species, helping strengthen nursery standards and expand sustainable agroforestry across the country.

#### A call to invest in forests

Healthy forests support healthy economies. When forests are degraded, the consequences — from soil erosion and flooding to biodiversity loss and climate impacts — often outweigh the short-term gains from unsustainable exploitation.

On this International Day of Forests, the message is clear: investing in forests is investing in climate resilience, rural livelihoods and sustainable growth.

For India, expanding agroforestry, strengthening forest-product value chains and promoting circular biomass systems can unlock new opportunities for green industries and resilient rural economies. Protecting forests is, therefore, not only an environmental responsibility but also an investment in a more sustainable and prosperous future.

Takayuki Hagiwara is the FAO Representative in India and a part of Team UN in India

Published - March 21, 2026 12:02 am IST

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