Forest Economics is one of the subjects under broad area of Natural Resource Economics which is less explored than its potential. Only very few authors abroad have come up and documented the concepts and applications of forest economics. The specialization in forest economics is also not at all visible in the Forestry Institutions of national importance either in Post Graduation or at Doctoral level. Paucity of quality books in the field of Forest Economics might be the reason. This book explores the importance of Forest Economics, Forestry Land Use, status of forest based industries in India and Tamil Nadu, Installed capacity and the capacity utilization, demand and supply of raw materials to the pulp and paper industries, demand supply gap, alternative arrangement to meet the demand supply gap.Above all, the book has also addressed the measures to overcome the constraints faced by the forest owners and appropriate strategies to alleviate the same in the Indian Context.