According to the International Rubber Study Group (IRSG), India registered the highest compound annual growth rate (CAGR) of 6.15% in NR demand between 2020 and 2024 among all NR - consuming and - producing nations.
Nearly 100,000 hectares of rubber plantations in Kerala remain untapped, primarily due to ageing trees, owners migrating abroad, and a shortage of rubber tappers, according to the Automotive Tyre Manufacturers Association (ATMA).
Across India, the total untapped rubber cultivation area exceeds 200,000 hectares. This comes as the country imports 40-45% of its annual natural rubber (NR) demand, estimated at 1.4 million tonnes, say officials from the representative body of six major Indian tyre companies, which account for over 90% of the nation's tyre production.
Speaking to reporters on Wednesday, Arun Mammen, Chairman of ATMA, highlighted that nearly 40% of the industry's natural rubber (NR) needs are currently met by imports due to limited domestic supply. Most Indian produced NR is consumed locally, leaving very little for export.
To tackle this shortage, the tyre industry, guided by the Ministry of Commerce & Industry, teamed up with the Rubber Board of India to launch Project INROAD
This initiative, backed by Rs. 1,100 crore from four major ATMA member companies, aims to expand NR plantations by 200,000 hectares and provide infrastructure and skilling support in India's rubber-growing regions.
"Despite these efforts, much more needs to be done to meet future NR demand, which is expected to hit 2 million tonnes by 2030", Mammen stated. He emphasized, India's tyre industry uniquely relies heavily on Natural Rubber, a sustainable material. While synthetic rubber makes up 60% of global tyre consumption, In India, 60% of the rubber used is natural".
According to the International Rubber Study Group (IRSG), India registered the highest compound annual growth rate (CAGR) of 6.15% in NR demand between 2020 and 2024 among all NR - consuming and - producing nations.
Mammen concluded, "There's an urgent need to accelerate domestic NR production through focused interventions to meet the rising demand."
He added that the Indian Tyre Industry has shown resilience in export performance in FY 2024-25, despite significant headwinds ranging from trade policy uncertainties and geopolitical risks to global supply chain disruptions.
Tyre exports from India surged by 9% year-on-year, reaching Rs. 25,051 crore compared to Rs. 23,073 crore in the previous fiscal, as per data released by the Ministry of Commerce.
With an estimated annual turnover of Rs. 1 lakh crore and exports exceeding Rs. 25,000 crore, the Indian tyre industry stands out as one of the few Manufacturing sectors in the country with a high export-to-turnover ratio.
The growth in exports has been driven by sustained investments in capacity, robust manufacturing activity, and focused R&D. "The tyre industry has exhibited remarkable resilience and growth post the COVID-19 downturn. Over the past 3–4 years, tyre manufacturers have invested approximately Rs 27,000 crore across greenfield and brownfield projects, underscoring their strong belief in India’s economic trajectory," he added.
According to a PwC Vision document, the Indian Tyre Industry is expected to grow at a CAGR of 11-12% until 2047. Rising domestic demand, increasing export potential, and ongoing technological advancements are key drivers of this sustained momentum.
"While global macroeconomic challenges persist, the Indian tyre industry is built on strong fundamentals. With a growing domestic market, we are better insulated against global shocks," Mammen added. Commenting on recent trade developments, Mammen said, "The industry is closely monitoring the situation regarding potential US tariffs.
We strongly advocate fair trade practices and a level playing field. At the same time, the Indian tyre industry remains committed to diversifying its export markets and sustaining growth."