Dear Esteemed Members,
Traversing Shifts in Global Manufacturing: A Defining Moment for India's Rubber Industry
The world of manufacturing is undergoing a massive transformation. As India experiences steady industrial growth by both public and private sector initiatives, the global market is marked by differing approaches. While, India is embracing open-market strategies and industrial expansion, the United States under President Donald Trump has renewed a protective position, seeking to revive domestic manufacturing by imposing tariffs and limiting imports. These conflicting approaches underline the need for a balanced, resilient and future-ready manufacturing ecosystem.
India’s industrial output increased by 5 percent in January 2025 which is a positive sign that momentum in the manufacturing sector, including rubber and allied industries, continues to build. The growth fuelled by infrastructure development, the government’s Make in India initiative and the Production-Linked Incentive (PLI) schemes are key segments such as automotive components, tyres, medical rubber products and industrial goods have seen a surge in demand.
The rubber sector, being closely aligned with these industries is naturally positioned to benefit from this upward trend. Increased capital expenditure on roads, railways and renewable energy has opened up significant opportunities for rubber manufacturers, especially in areas like vibration control products, conveyor belts and insulation materials. At the same time, the sector is rapidly embracing automation, smart manufacturing and AI-led production technologies enhancing both efficiency and quality. Yet, the path ahead is not without challenges.
Fluctuating global demand, raw material price volatility and supply chain disruptions remain a major concerns. This is where the role of the All India Rubber Industries Association (AIRIA) becomes pivotal.
As a collective voice of the Indian rubber industry, AIRIA continues to engage with representatives, address key issues facing MSMEs and promote innovation and competitiveness within the sector. Across the globe, protectionist measures such as the recent 25 percent tariff imposed by the U.S. on select imports aim to boost local manufacturing but raise concerns about global trade fragmentation. In contrast, India is monitoring a course that blends domestic capacity building with international cooperation.
The rubber industry must leverage this environment to enhance exports, reduce import dependency and strengthen its position in global supply chains.
With continued support from AIRIA and close collaboration between industry participants and the government, India’s rubber sector can rise to meet global demands and contribute significantly to the country’s economic aspirations.
AIRIA is actively engaged and alert to the changes and recommendations necessary to provide the impetus that our industry requires to function at its optimal best.
I kindly request our esteemed members to share their concerns and suggestions with the association, enabling AIRIA to proactively engage with the relevant agencies.
Let us move forward with innovation and a shared vision for excellence.
Warm regards,
Shashi Kumar Singh
President, AIRIA.