India Targets Global Oud Market to Boost Northeast Economy

With over 139 million agarwood trees concentrated in the North Eastern Region, India is pivoting from raw material supplier to a global powerhouse for luxury oud oil. The government is now courting private investment to build local processing hubs, aiming to capture higher margins for regional growers and communities.

Editorial·August 11, 2026·reads: 441

India Targets Global Oud Market to Boost Northeast Economy

The strategy centers on shifting the industry toward sophisticated distillation, international branding, and traceable supply chains. Union Minister Jyotiraditya Scindia and Minister of State Sukanta Majumdar emphasized that moving beyond raw wood exports is essential for economic growth. By establishing local processing facilities, the region intends to transform its vast natural resources into high-value products destined for premium perfume markets in the Gulf, Europe, and the United States.

Assam leads the sector with 114.3 million trees, followed by Tripura with 15.15 million. To harness this potential, a new export roadmap outlines a shift toward scientific cultivation and strict quality certification. The newly formed Agarwood Export Promotion Cell is actively digitizing trade documentation and pursuing GI registration to secure a premium reputation for Indian oud. The objective is clear: the Northeast must evolve from a simple resource basin into a global hub for the science and branding of aromatic resins.