Agroforestry has been used historically in India as a sort of subsistence farming, but it is now also being acknowledged for its benefits to the recently developed wood-based manufacturing sector from an economic perspective. A complete imbalance among demand and supply has been brought about by insufficient forest cover, inadequate productivity, and legal constraints, together with rising demand for wood and wood products due to growing populations, industries, and related policy changes. Through technological, organizational, and commercial initiatives, some organisations have led research by developing a value chain in industrialized agroforestry. Agroforestry has the ability to deliver food security, aid in the reduction of poverty, and contribute to ecosystem conservation through carbon absorption and conservation of soil. Despite its numerous benefits, agroforestry is still not widely used in rural areas, especially by smallholder farmers in developing nations. The lack of agroforestry in public policy makes it difficult to recognize this system's potential to address the climate problem and enhance rural livelihoods. The availability of a market support system for several types of plywood, pulp wood, lumber, and match wood had a big impact on farmers who grew trees. Similar to all other economic sectors, agroforestry is transitioning to a market economy and facing major modifications to its social, legal, fundamental, effective, and supply setups. To build effective and fruitful agroforestry systems and to maximize private and public investments in agroforestry, however, comprehensive economic research and analysis are required. This review gives a special emphasis on the current evidence depicting the characteristics of agroforestry adoption, its benefits and potential drawbacks, as well as challenges for the adoption in India.
