This paper undertakes a critical look at the consumption pattern and the likely future supply of rubberwood as an important source of timber in India. The projected estimate of total area under rubber is over 700,000 ha. Allowing for 50;sawing loss, the estimated production of sawn timber is about 0.315 million cu.m. in 1993 and is expected to grow to 0.442 million cu.m. by the year 2000. The comparative suitability indices of rubberwood and other species show that rubberwood could effectively replace other species with proper treatment and seasoning in various applications in India. The working quality index of Indian rubberwood is 130 when compared to teak (100). The finish adaptability of rubberwood is about 94;of teak under standard conditions. The pattern of utilisation of rubberwood indicate the predominance of sawmills (45;), followed by veneer industry (11;), processing sector (3;) and safety matches (0.95;). The rest (almost 40;) is mostly used as fuelwood. India offers an excellent potential and opportunity for investment in the rubberwood industry for reasons, including better quality raw material, skilled and technical manpower, infracture, scope for vertical integration etc.