MUMBAI: The industry growing at healthy pace of 10% is set to reach Rs. 80,000 crore Recent data from CAPEXIL indicates the exports of rubber products increased by 5%, boosted by non-tyre rubber products.
This is noteworthy as the sector has witnessed dwindling growth rates during the last three fiscals, and indicates the large potential for growth if proper policies are in place.
The rubber industry in India manufactures around 35,000 different rubber products that find use across critical sectors like auto, defense, healthcare, agriculture and other niche areas.
The rubber products industry in India, the size of which is currently estimated at Rs. 75,000 crore, is dominated by the small-scale sector.
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Around 90% of the 6,000-plus rubber products manufacturing units in the country are micro, small and medium enterprises (MSMEs) and they account for 40% of the rubber products exports.
India is the 3rd largest producer and 2nd largest consumer of rubber in the world. Estimates suggest over two million people are employed in the rubber industry including tyre units, and another one million in the plantation sector across the country.
“Rubber is a sunrise sector in India and fits perfectly with the government’s ‘Make in India’ and Skill India initiatives, but also suffers from the shortage of skilled labour and abnormality in the duty structure which is unfair to domestic manufacturers,” says Kamal K. Chowdhury – President, All India Rubber Industries Association (AIRIA).
The not-for-profit body serving the rubber products industry and trade with the objectives of safeguarding and promoting interests of the Rubber Products Industry, especially the MSMEs.
The association, established in 1945, has over 1300 members at present. The per capita consumption of rubber in India is estimated to be very low, in the range of 0.8 – 1 kg, against a global average of 3.2 kg, and as high as 12 to 14 kg in Japan, Europe and the US.
Even China has per capita consumption of 8 kg. On the export front, India has a paltry share of 1.48% against China’s 11%. AIRIA maintains that India’s share of export of rubber products can be easily enhanced to 5% in the next 5-7 years to take the country to the top 5 exporters in this sector.
“This gives us an idea of growth potential and we are working towards this objective,” adds Chowdhury. The rubber products industry in India also suffers from skills shortage in the absence of proper and organised training facilities, as the workforce is basically trained on the job.
As against the need for 7 lakh skilled personnel at present, the industry has only about 5 lakh, with a shortage of 2 lakh skilled candidates.
To address this need, Rubber Skill Development Council (RSDC) has been constituted under the aegis of National Skill Development Corporation (NSDC), in collaboration with AIRIA and Automotive Tyre Manufacturers Association (ATMA), with the aim to identify and fulfil skill development needs in the rubber sector.
The RSDC encourages the industry to employ skilled and certified manpower and to meet the demand conducts various training programmers across the country covering rubber tappers at one end of the spectrum, and technicians working at the manufacturing units, at the other.
“As a vital component of ‘Make in India’ drive to build things here and sell everywhere, India’s Rubber Products industry is well poised,” mentions Kamal Chowdhury in conclusion.
