Madhumitha Jaganmohan
Research expert covering climate and environmental sustainability
Rubber industry in India - statistics & facts
With rubber cultivation introduced in the early 1900s in the southern region of India, today the country is the world’s sixth-largest producer of natural rubber. The cultivation of rubber trees has become widely practiced in India due to highly supportive governmental supervision and favorable climatic conditions. Kerala and the Kanyakumari District of Tamil Nadu on the Indian subcontinent constitute the traditional region for rubber plantations. Recently, rubber plantations were also established in the country's northeast region to cater to the growing demand. As of 2022, India was the world’s second-largest natural rubber consuming country.
Although India is a leading rubber producer, it still imports rubber from other countries to meet demand. The natural rubber deficit and its labor-intensive production led to the rise in demand for synthetic rubber. In fiscal year 2022, the production volume of synthetic rubber in India amounted to approximately 383 thousand metric tons.
India's domestic rubber production and demand
Natural rubber production in India reached its peak of nearly 914 thousand metric tons in 2013 due to favorable weather conditions and a sudden surge in global rubber prices in the beginning of that decade. Nonetheless, it subsequently declined owing to the excessive monsoons that disrupted the rubber-tapping process in Kerala, which is the foremost producer of natural rubber in the country. Rubber production in the country experienced a significant decline in 2016. Since then, it has seen a modest recovery, but it is still far below the 2013 peak. Furthermore, competition from Southeast Asian countries with lower production costs is fierce.Although India is a leading rubber producer, it still imports rubber from other countries to meet demand. The natural rubber deficit and its labor-intensive production led to the rise in demand for synthetic rubber. In fiscal year 2022, the production volume of synthetic rubber in India amounted to approximately 383 thousand metric tons.
India's booming tire Industry fuels rubber demand
Despite these hurdles, India's domestic demand for rubber remains strong. The country's booming tire industry, a major consumer of rubber products, which is the most major consumer of rubber products in India, is a key driver. In 2023, the total tire production in India stood at around 217.4 million units. A gap between domestic production and consumption will be created as India's strong demand for with automobiles continues. Investment in research, improved farming practices, and potentially ramping up synthetic rubber production to supplement natural rubber supplies could help the country to close its supply gap.
