Opportunities in the India rubber industry

Rubber is categorised into natural, synthetic and reclaimed rubber. Asia is the largest source of natural rubber, with 94 percent of the total world’s total output being produced here.

India’s rubber industry

India’s rubber industry has become a vital sector of the Indian economy. In terms of global rubber production and consumption, India is the third and the fourth respectively.

Commercialization of rubber in India began in 1902, as Indian farmers recognised the possibility of rubber as a crop. Since then, rubber commerce has played a significant role in stabilising India’s economy.

Prior to 2001, rubber was listed as a negative import which greatly reduced opportunities in the country’s rubber industry. There was government issued policies that prioritised domestic Indian rubber over international imports. However, that was all in the past, and India has now accepted foreign rubber companies into their industry; thus, offering many opportunities for entrepreneurs all over the globe. Initializing a good export plan will create a profitable way forward for foreign investors who wish to participate in India’s growing rubber industry.


The continuous demand for rubber materials has opened up many doors for both international and domestic players.

Below are some business opportunities and benefits linked to industrial and consumer rubber products:

  • The automobile sector holds many opportunities being the largest consumer of natural rubber. in the automobile industry. In 2016, there was a reported 15 percent growth in this industry, and annual growth according to this trend is expected for the next few years.
  • Growth in income and standard of living will provide major opportunities for rubber exports.
  • Exports will also cause a shift in the price of domestic rubber to match international competition, giving the fair chance to foreign companies.
  • India’s rubber industry requires international cooperation to pursue the nation’s rubber board agenda to bring rubber plantation within the boundaries of  Carbon Trade and Kyoto protocol. Both these refer to emission and pollution control. While Carbon Trade allows companies to sell pollution rights to other companies who need them, Kyoto refers to accepting and taking responsibility for global warming and making amends fix it.
  • Activities to improve the properties of natural rubber is being highly encouraged by local authorities, so export initiatives and new rubber innovations from other nations are welcome.

Success factors for industry players

The above-mentioned opportunities and market benefits also bring stiff competition into the market. There are three key factors that will help entrepreneurs to succeed in their rubber ventures in India:

  • Proximity to rubber plantations will give better access to the rubber trees saving time and money in transport and other logistics
  • Rubber production is low during rainy seasons, so it is vital to be prepared for fluctuations in production in this phase.
  • Refine your sector research and development to claim a strong foothold in the Indian rubber industry

Apart from researching the benefits and opportunities in India’s rubber industry, thorough market research is needed to turn opportunities into wide-scale profit.

Share this article

Download our

Market entry approach

Read in detail how we conduct market entry projects, what steps we take and what you need to prepare.

    First name

    Last name

    Email address

    This site is protected by reCAPTCHA, our privacy policy, the Google Privacy Policy and Terms of Service apply.

    Market entry cases

    CAN Home appliances
    RR Engineers
    Golden Red Trade Solution
    EEPC India
    De Heus
    Apart Group
    HCP – the sweetener company
    Le Joyau d’Olive