Showcase the excellence of ‘Made in Italy’ products in one of the most dynamic sectors of the Indian economy. This is the objective of Italian firms’ participation in Indiawood 2008 , an international exhibition of woodworking machinery that will take place at the Bangalore International Exhibition Centre from 29^th February till 4^th March. ICE (the Italian Trade Commission) will support the initiative by organising an official delegation to what is considered the biggest fair in India in this industry. According to the estimates of the organisers, the fifth edition of Indiawood should attract around 450 exhibitors spread over an area of more than 25,000 square meters.

Aside from further considerations, the figures testify the objective importance that Indiawood is gradually acquiring, in a country where there are over 100,000 woodworking firms, most of them still craft-based, employing around 200,000 people. It is one of the most dynamic sectors of the Indian economy, thanks to the growing demand from an progressively more affluent middle class. As a consequence, Indian woodworking firms are trying to industrialise their production acquiring machine tools. Three-thousand have already completed their mechanisation process, and the numbers are growing steadily. The two drivers of growth in this sector are the need for up-to-date machinery and to boost production.

Italy can be a privileged partner for the Indian woodworking industry in its ‘growing up’ phase, thanks to the excellence of its products: Italian made woodworking machinery are appreciated worldwide. The relationship of trust that Italian firms in this sector have built with their final clients has contributed, in a virtuous circle, to strengthen the reputation of their products. Craftsmen and small medium enterprises (SMEs) all over the globe acknowledge that Italian machineries offer an added value in terms of quality and customisation of supply: whenever there is a need to create very highly mechanised systems – capable of producing even small batches in a very short time with predictable industrial prices – Italy’s firms can deliver.

Italy’s leadership in the sector is not just in terms of quality. Even in absolute terms, the country is one of the major producers in the world of machinery and technologies for the woodworking industry and its by-products. According to the latest available figures, exports in 2006 totalled 1,431 million euros, up by 15.6% compared to 2005: the best performance compared to that of Italy’s major competitors in this field (Germany, Taiwan, Japan, China and the US). China came close in terms of the percentage increase (+15.2%), but in absolute terms its exports were worth a quarter of Italy’s (394 million euros).

The latest statistics from Acimall (the trade association in Italy for the woodworking machinery and accessories industry) confirm the positive trend observed in the last two years. According to the quarterly survey, in July-September period orders were up by 10.5%. Exports grew by even more (+13.5%), compensating for the stable demand on the domestic front (+0.6%). Besides, the Italian market only accounts of 20% of production, indicating yet again the high propensity to export of the firms in this sector. Acimall quarterly survey also covers the outlook for the future. 55% of entrepreneurs being interviewed production will remain stable, while 24% expects it to grow. Foreign orders should remain stable (as expected by 69% of the sample) o increase further (as 24% of the firms believe).