Forests play an important role in economic development by providing products of vital use, which are extensively used directly and indirectly. Unless Forest Sector is managed properly, the gap between supply and demand is likely to increase. For proper planning and management, understanding their production levels both present and future and invest­ment elasticities in their production are very important. Chemical wood pulp had highest compound growth rate of production and household + sanitary paper showed negative com­pound growth rate. Most of the R2 values and 'C* coefficients were found to be significant. Projected figures of production of other paper + paper board showed declining trend.