India’s Natural rubber (NR) consumption is projected to attain 20 lakh tonnes by 2030 and there’s a want to accelerate domestic manufacturing, Arun Mammen, Chairman Automotive Tyre Manufacturers Association (ATMA), stated.
“In FY25, domestic NR production stood at 8.7 lakh tonnes, while consumption was 14.1 lakh tonnes, resulting in a deficit of over 5 lakh tonnes,” he stated in an interview.
“This underscores the need for sustained long-term investments in plantation development, tapping, and productivity enhancement,” Mr. Mammen stated.
Accelerating domestic pure rubber (NR) manufacturing is a nationwide precedence, given the strategic significance of NR to a number of sectors, particularly the tyre business. Bringing extra space beneath rubber cultivation—particularly in non-traditional areas just like the North East—is vital. Several North Eastern state governments are proactively supporting this agenda, he stated.
Mr. Mammen identified in a first-of-its-kind public-private partnership, the INROAD (Indian Natural Rubber Operations for Assisted Development) challenge was launched by ATMA member corporations (Apollo, CEAT, JK Tyre, and MRF) in collaboration with the Rubber Board of India.
The challenge goals to develop two lakh hectares of recent rubber plantations throughout the North East and West Bengal. Over 1.25 lakh hectares have been introduced beneath cultivation within the first 4 years. ATMA member corporations have dedicated ₹1,100 crore to the challenge, he stated.
A major alternative lies in bettering manufacturing by tapping almost 2 lakh hectares of untapped rubber plantations, together with 1 lakh hectares in Kerala alone. Union Commerce & Industry Minister has just lately emphasised this chance throughout stakeholder consultations in Kerala, Mr. Mammen stated.
Rubber bushes take roughly six to seven years from plantation to tapping, Mr. Mammen stated.
He additionally identified inverted responsibility construction on NR is likely one of the key challenges.
“While tyres can be imported at concessional or zero duty rates under various Free Trade Agreements (FTAs), natural rubber—our primary raw material—attracts a Basic Customs Duty (BCD) of 25% or ₹30/kg (whichever is lower). This is among the highest globally and severely impacts cost competitiveness, particularly when global rubber prices are low. Addressing inverted duty structure is essential to support domestic manufacturing and reduce reliance on imports of finished products,” he stated.
In the final three to 4 years alone, the business has invested roughly ₹27,000 crore throughout greenfield and brownfield initiatives. As per a PwC Vision Document, the business is projected to develop at a CAGR of 11–12% until 2047, Mr. Mammen stated.
