● What is the current scenario in the Rubber Industry?

With a 1 million tons consumption the Indian Industry is the 5th largest globally. Natural Rubber (NR) grown in India's backyard accounts for 70% of this Consumption.
High Taxation, Government Policies, Pro-grower leaning ( at the industry's cost), subsidizing exports of NR have seen the NR price spiral by over 100% from Rs40+ to Rs80+. What was once an advantage has now turned into a burden as cheaper imported goods flood the market ( some even with cheaper subsidized Indian Rubber.). Similar is the case with other raw-materials like zinc oxide, rubber chemicals & so on. Thus the industry is growing despite the govt. With proper support the industry can d wonders.

● What are the other problems the Industry faces?

High energy cost, obsolete labour loss, poor infrastructure, high interest rate continues to be the bane of many industries including the Indian Rubber Industry.

● Where do you see the Rubber Industry grow from here?

Economic growth has spurred the growth of the automobile industry in India. With 65% rubber going into automobile and India Story unfolding the future for the Rubber Industry is bright & we are looking at a 10% plus growth in the medium term. Much of this growth will have to come from exports. Outsourcing of Rubber components like in other sectors has a huge potential Out of the US$100 billion trade in rubber products, the US alone imports products worth US$60 billion, most of which are ripe for outsourcing. We aim for a 2% share of this market i.e. US $ 2 billion, up from the current exports level of US $ 0.5 billion annually.

● Are you seeking Government Intervention?

The industry is capable of fighting & growing of its own if the step motherly treatment to the industry is stopped.
While imports of plastic raw materials now attracts a 5% duty the Rubber Industry does not get the same privilege. We are seeking reduction in duties on all imported inputs specially natural Rubber, Synthetic Rubber, additives & machinery desperately required for modernization.
Also there should be lower import duties on raw-material as compared to that on rubber products, if the domestic rubber industry has to survive.
The advent of foreign investment in Rubber Industry is growing rapidly. Detroit already sources strategic rubber components from India. We see a massive growth in the export of rubber products annually from the present levels, due to BPO investments & growth of the auto ancillary sector.

● What is the role of Association ?

The Association acts as a platform and facilitator for information & services being exchanged within the industry on global basis.
The Association directly funds education activities at the Under-Grad level, Graduate level, Post Graduate level, workshop level along with reputed educational institutions in India.

● What is your vision for the Rubber Industry?

I see the Indian Rubber Industry grow to be in the top 3 rubber consumer/producer in the world. For this we are hosting India Rubber Expo 2007 at Chennai from 17th Jan - 20th Jan, the larges show in Asia.