The rubber industry is expected to double its exports by 2025

  

The rubber industry is expected to double its exports by 2025

Mumbai, June 04, 2022: All India Rubber Industries Association (AIRIA) established in 1945, an apex body for rubber industries in India. AIRIA organised an event for exchanging ideas and suggestions for the smooth functioning of the rubber industry in next coming years. The meeting comprises Dr. Sawar Dhanania President, Mr. Shashi Singh, Senior Vice President, Mr. Vikram Makar Immediate past President, Mr Vinod Bansal, Chairman Export Committee accompanied by 50 important non tyre exporters of goods. 

Joint Director General of Foreign Trade Mr.Ramesh Holiachi was the chief guest at the event held yesterday on 3rd June at ITC Grand Maratha, Mumbai.

The event was attended by dignitaries from MSMEs and SMEs across India. The meeting aimed to highlight the problems and the potential of the Rubber Industry in India. Rubber industry has a huge potential for exporters as India is a labour-intensive market. Due to Covid-19 and Ukraine war crisis there has been a host of problems like availability of raw materials, increase in shipping prices, and challenges to the cash flow. India has the highest cost in logistics, i.e 17-18%. With the National Logistics Policy (NLP) announced the total logistics amount paid by the exporter will be reduced to 6-7%. MSME criteria should be increased from 250 cr in order to keep the future of growth intact.

The 2 billion markets of non tyre rubber sector aim to double their exports by 2025.

Mr. Shashi Singh, Senior Vice President of AIRIA said, “Indian Institute of Foreign Trade (IIFT) and the Export Promotion Councils should educate MSMEs on export procedures, documentation requirements, and the finer points of export. We expect IIFT & the Export Promotion Councils should share export market intelligence and arrange specialist meets. It will be beneficial to individuals who are new to exporting and wish to understand how to become export-ready.

Dr. Sawar Dhanania, President said “The global market for rubber products which is estimated at around US$ 212 billion today is expected to also grow by 2025. Because MSMEs are so important to India's economy and commerce, we believe that India's free trade agreements (FTAs) should include provisions to address the special concerns, demands, and barriers that MSMEs may face while doing business in foreign markets. Accordingly, we urge the Government to take steps to ensure that the terms in our FTAs benefit the MSMEs for internalization, with trade facilitation mainstreamed in MSME development goals. SME can work world-wide by creating a level playing export infrastructure for MSMEs, improving their financing conditions, educating them about suitable marketing channels, Facilitate their working with Trading Companies “

Answering the query raised by the members on facing the difficulties and expansion of the rubber industry at every stage Mr.Holiachi assured to solve the complexity faced by the industry .“In 2019 to promote trade, the central government along with state and its partners is promoting export. Every district has an export hub now. In the last 1-1.5 years Government released 55000 Crores under MEIS incentives as a reward. There are 13 trade agreements under which 12 are already implemented. Under India & UAE, 97% of Indian products exported get the direct benefit. The India & Australia agreement is yet to be notified by the Indian Government. The Australian government has provided geo-duty concession to India.91-97% of Indian products will get duty concession in the Australian market. Footwear, Pharmaceuticals, and textile industry in India to benefit from this agreement,” said Mr. Ramesh Holiachi, Joint Director General of Foreign Trade of Mumbai