Published on April 7, 2014

Indian government has agreed with the All India Rubber Industries Association for the implementation of national Policy which will help rubber industry. The Policy designates the Indian rubber industry as a “Sunrise Sector” bringing major improvements to India’s economy, announced on April 1. It will help for the growth of the industry and to transform the Indian rubber industry into a global sourcing hub similar to the Indian information technology industry.

A new rubber plant is going to buid near Jamnagar, which is a joint venture of Realiance Industries limited and SIBUR, Russia based petrochemical company. This plant will be having capacity of producing 100,000MT/Year of rubber, design and purchase stages are underway. Sources near to company said that demand level is good and opportunities are very wide in India thus attracting many foreign companies to make an investment over here.

Rubber Board Chairman Sheela Thomas said that prevailing low prices and declined demand of rubber is a subject of concern but growth of this sector has always been cyclical and recovery is likely to come. Low demand for this industry is because of declined demand in auto industry and that is likely to improve by next year that has been expected by industry analysts.

Recently a research report has said that the global market for Styrene Butadiene Rubber is expected to reach USD 23,144.3 billion by 2020. Reason for such growth is attributed to increased demand of SBR from tire manufacturing. Automobile Industry has also witnessed good growth from past couple of years and due to that demand in tire industry has also increased and that has resulted in the hike of demand for SBR. Industry analysts said that incresed prices of natural rubber have also created good demand for Synthetic rubber such as SBR.