India is well-positioned to benefit from rising global demand for sustainable rubber, as it is emerging as a key player in meeting the rising offtake, says All-India Rubber Industries Association (AIRIA) President Anay Gupta.
“The country’s rubber industry is undergoing a significant transformation, driven by a focus on sustainability, eco-friendliness, and compliance with international standards,” Gupta told businessline in an online interaction.
The government has launched initiatives such as the Indian Sustainable Natural Rubber (iSNR) and INR Konnect (a web-based platform rubber growers with adopters to develop untapped plantations to increase production) to promote sustainable rubber production and enhance the country’s competitiveness in the global market.
Meeting EUDR norms
“The iSNR initiative ensures that Indian rubber meets European Union Deforestation Regulation (EUDR) standards, making it an attractive option for global buyers,” said the AIRIA President.
The country’s rubber production is becoming more efficient, with the government providing subsidies, training, and infrastructure support to farmers. It is expanding the area under rubber cultivation, particularly in non-traditional regions, to increase production and meet growing demand.
The rubber industry is innovating, with companies investing in research and development to create eco-friendly and sustainable rubber products. For example, Modi Rubber has launched a bio-based EPDM compound with 40 per cent renewable content, he said.
Demand for rubber is being driven by the automotive sector, with vehicle production projected to grow by 7-9 per cent annually.
Lower output costs
The country’s rubber production costs are lower compared to other countries, making it an attractive destination for global buyers, Gupta said.
Stating that India is well-positioned to benefit from the rising global demand for sustainable rubber, he said, in addition to iSNR and INR Konnect, efforts such as the National Rubber Policy 2019 focus on value chain development, efficient tapping, and market access.
“By integrating sustainability into production and processing, India can significantly strengthen its export competitiveness in the coming years,” said Gupta.
Per a recent study by The International Rubber Study Group (IRSG), India’s natural rubber (NR) consumption increased at a CAGR of 6.15 per cent during 2020-2024. It was the highest among consuming and producing nations.
SR’s share
In the first half of 2025, consumption grew by 2.1 per cent. On the other hand, synthetic rubber consumption increased by 5.6 per cent in the first half of 2025. “The primary driver for this growth is the automotive tyre industry, which accounts for 68.9 per cent of synthetic rubber consumption,” said Gupta.
Synthetic rubber is expanding in segments such as passenger car tyres, industrial products, footwear, hoses, belts, seals, and EPDM-based automotive components.
With rising vehicle production and growing adoption of speciality elastomers, synthetic rubber’s share in India is expected to increase gradually in the coming years, he said.
The global synthetic rubber market continues to show strong growth, the AIRIA president said, adding that with sustainability and performance becoming central to modern tire design, innovations in bio-based and eco-efficient synthetic rubber are further strengthening market growth.
Using blends
He said synthetic rubber, being petroleum-derived, becomes more cost-competitive when crude oil and feedstock prices soften. On the other hand, natural rubber prices remain volatile, influenced by climatic disruptions, tapping cycles, labour shortages, and rising demand from China and other major importing countries.
“While natural rubber remains indispensable for applications requiring high elasticity such as heavy-duty tyres, synthetic rubber continues to gain pull due to its consistency, durability, and versatility across industrial applications,” said Gupta.
So, manufacturers are increasingly use blends of natural and synthetic rubber to balance performance and cost, he said.
Domestic synthetic rubber prices increased to ₹185 a kg during March-August this year compared with ₹176 during October 2024-February 2025. Prices of ribbed smoked sheet (RSS) 4, used by the tyre sector, are currently ruling at ₹184 a kg against ₹192 a year ago, Rubber Board data showed.
Published on December 7, 2025
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