Bamboo is classified both as a tree and a forest produce and this inhibits its use in many instances. Three Central Acts—Indian Forest Act 1927, Forest Conservation Act 1980 and Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006—govern the use and movement of bamboo. The Andhra Pradesh Forest Act 1967 also recognises bamboo as a forest produce.

The study has suggested that bamboo grown on non-forest private lands should not be subjected to these laws and its free movement and use be ensured.

Bamboo produce covers a whole range. According to one estimate, the global market size of bamboo produce is $ 7.5 billion, of which China has a share of about $ 5 billion. According to the IDF study, China exports about Rs 10,000 crore bamboo products every year. The size of domestic bamboo economy in India is estimated at Rs 2,043 crore.

However, the potential market is estimated at Rs 4,463 crore which can grow to Rs 26,000 crore by 2015.

At present, the annual harvest of bamboo in India is 13.47 million tonne, while the domestic demand is 26.69 tonne. Bamboo is used extensively in the Northeast.

The IDF study suggests more use of bamboo in the paper pulp industry, in manufacturing wood substitutes, composites and in products including Venetian blinds and angarbatis (incense sticks).

In recent times fibre from bamboo has also been used in making yarn and fabrics. Several spinning mills use 100 per cent bamboo yarn and companies like Raymond, BSL, Paramount Textile Mills, Madurai have already made fabrics out of bamboo.

The Planning Commission has estimated that the bamboo industry can provide 8.6 million new jobs, create a market size worth Rs 6,500 crore with an investment of Rs 2,600 crore and lift about five million artisan families out of poverty.

Though the government launched the National Mission on Bamboo Applications (NMBA) in November 2004 and the National Bamboo Mission (NBM) in December 2006, the use of bamboo is still to be optimised.