India’s natural rubber demand is expected to grow by around 3.6 per cent this year, outpacing several global markets, driven by rising consumption from the automotive and electric vehicle sectors, infrastructure development, and expanding export opportunities.
Anay Gupta, president of the All India Rubber Industries Association, said that the sector is witnessing increased investments in capacity expansion, technology upgrades, and export-oriented manufacturing. The industry is entering a new growth cycle, supported by strong domestic demand, rising exports, and global supply chain shifts. This momentum is expected to accelerate expansion across both tyre and non-tyre segments, he said.
Amid ongoing supply chain diversification, Gupta said the country is steadily emerging as a key player in the global rubber ecosystem. The country’s strength lies in its robust domestic consumption, a well-established tyre and auto-component manufacturing base, and a vast network of MSMEs engaged in rubber-based products.
Reliable alternative
As global companies adopt a “China-plus-one” strategy, India is increasingly being viewed as a reliable sourcing alternative. Trade agreements, including the proposed India–EU FTA, could further enhance export competitiveness by offering preferential market access, he added.
The global natural rubber market, according to him, is set to remain structurally tight in 2026, with demand projected at 15.6 million tonnes, exceeding expected supply of around 15.2 million tonnes, marking the sixth consecutive year of deficit. This imbalance is being driven by adverse weather conditions, ageing plantations, and crop diseases, some of which have reduced yields by up to 30–35 per cent in key producing regions
China’s decision to levy anti-dumping duties of up to 30 per cent on halogenated butyl rubber imports from India, Japan, and Canada signals more than a routine trade correction. It reflects a broader shift towards strategic protectionism in critical industrial inputs.
Realignment likely
Given natural rubber’s central role in tyre manufacturing and automotive supply chains, such measures are likely to trigger a realignment of global trade flows. Exporters may increasingly pivot towards alternative markets such as ASEAN, Europe, and Africa, reducing dependence on China, he said.
Beyond expansion, he said the the natural rubber industry is undergoing a structural transformation, moving towards sustainability, innovation, and value-added manufacturing. There is a growing emphasis on ESG-aligned practices, including sustainable sourcing and traceability systems. Simultaneously, companies are investing in specialty rubber products, high-performance materials, and circular economy solutions such as recycling.
Published on March 23, 2026
