Last year’s economic survey of 2017- 18 identified exports as the biggest source of upside potential for growth in India. Diamond, Rubber, Rice, Packaged Medicaments, etc, make for top annual exports from the nation, therefore, complementing a positive trade balance.
With appropriate export growth, one of the unprecedented stories has been of the rubber industry in India — world’s largest producer and third largest consumer of natural rubber. Stable economic growth rate pegged at around 8%, coupled with rising foreign exchange reserves, FDI inflow, makes India the world’s second fastest growing economy. Due to this backdrop, Indian rubber industry has been growing tremendously over the years, in spite of a declining rubber production in the world.
As the outset for most of the production zones are in the traditional rainforests, about 90% of India’s total production of natural rubber is contributed by Kerala, Tamil Nadu—where multiple consumption of rubber in the form of Ribbed Smoked Sheets, such as in the automotive tyre sector, footwear, tubes, camelback and latex products, has led to an annual turnover of Rs 12,000 crores.
Although India is the leading producer of rubber, the country still imports it from other nations. However, with leading companies such as Ruia Group, Deluxe Rubber Industries, Madras Rubber Factory, etc., Indian rubber industry is rapidly expanding and evolving.
As per the recent developments, Indian rubber Industry is expected to grow at about 8% per annum in this decade, similar to nation’s GDP growth. The prospect of growth is further enhanced by a boom in the vehicle industry, due to rapid industrialization and economical viable options in the market. One prime factor that makes Indian rubber industry have an upper hand is its consumption, which is about 0.8 kg in against 12 kgs in Japan, USA and Europe.
Things looks good for the rubber industry in India and with rapid urbanization and advent of Industrial revolution 4.0 in the coming years, the country and the world would surely require more input from this industry.