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Synopsis Forest closely links human activities with nature. Similar to agriculture, forests also reveal the wealth of a nation. Investment in forestry and realisation of returns is taken care of by the state, due to the long gestation period and several laws governing the exploitation of forest resources. However, efforts are taken by the government to widen the forest cover through several afforestation programmes and agroforestry projects. Both at the regional level and at the micro level, the stakeholders in the forest development have to understand certain basic principles underlying forest management. An attempt is made in this book to explain the principles of economics and management as applied to a development project in the forest sector. This book is prepared with the undergraduate students of forestry in mind and hence the sophisticated mathematical applications are limited. It is believed that this book will be useful to them.