India Rubber Market

India Rubber Market Size and Share:

The India rubber market size was valued at USD 3.85 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 5.53 Million by 2033, exhibiting a CAGR of 3.90% during 2025-2033. The market is experiencing growth due to several key factors, including the rising automotive production, infrastructure development, and industrial growth, and expanding rubber cultivation. Government initiatives and support for the sector, along with export opportunities, are also enhancing the market potential. The growing demand for durable, eco-friendly rubber products is further driving innovation and broadening the market's scope, contributing to increasing India rubber market share.

The rubber market in India is witnessing significant growth because of a combination of industrial, economic, and policy-driven factors. A primary driver is the booming automotive sector, which requires large quantities of rubber for tires, seals, belts, and other components. The expansion of the non-tire automotive segment, including parts for two-wheelers and electric vehicles, further boosts demand. Infrastructure development and rapid urbanization also fuel the need for rubber-based products such as pipes, roofing materials, and flooring solutions. Government support through schemes, subsidies, and training programs has further incentivized rubber cultivation and processing. For instance, in May 2025, a new project to improve NR quality was introduced under Project INROAD to fortify India's natural rubber ecosystem. iSPEED (INROAD Skilling and Production Efficiency Enhancement Drive) is the name of the initiative. 

The India rubber market growth is also driven by India’s increased focus on domestic rubber production, particularly in northeastern states like Tripura and Assam, which is helping reduce import dependence and ensure a steady raw material supply. Moreover, sustainability trends are encouraging innovation in rubber recycling and the development of eco-friendly alternatives. For instance, in February 2025, TRST01 collaborated with the India Rubber Board to reshape sustainable commodity sourcing, positioning India as a leader in ethical, traceable, and EUDR-compliant natural rubber production. India's commitment to ethical trading practices is further illustrated by the Indian Sustainable Natural Rubber (iSNR) initiative, which signifies a pivotal moment in the sustainability of worldwide supply chains. Export opportunities, especially to neighboring countries and Africa, add to market momentum.

India Rubber Market Trends:

Expanding Automotive Industry

India's rapidly growing automotive sector, including both tire and non-tire applications, is a primary driver of rubber demand. With increased vehicle production, especially two-wheelers, passenger cars, and electric vehicles, comes higher consumption of natural and synthetic rubber for tires, belts, hoses, and seals. According to SIAM, in December 2024, India produced a total of 19,21,268 units across passenger vehicles, three-wheelers, two-wheelers, and quadricycles, highlighting continued growth in the country’s vehicle production. Domestic automakers, foreign investments, and infrastructure development continue to fuel this trend. Additionally, the shift toward electric mobility introduces new requirements for high-performance rubber materials. This sector's consistent growth creates a stable and increasing demand for rubber products, significantly contributing to the market’s expansion and shaping production, supply chains, and innovation in rubber-based materials. For instance, in February 2023, Yokohama Rubber has increased its capacity to produce passenger car tires in India to satisfy the growing demand from the domestic market.

Rising Rubber Production and Government Support

India’s rubber production is increasing, particularly in states like Kerala, Tripura, and Assam, due to improved cultivation practices and government schemes. Initiatives like iSPEED and iSNR promote better quality, productivity, and traceability in rubber farming, reducing dependence on imports. The government provides subsidies, training, and infrastructure to support growers, especially in the northeast. According to the India rubber market forecast, these efforts enhance domestic supply, stabilize prices, and improve quality standards, making Indian rubber more competitive. As natural rubber remains a critical input for multiple industries, a strong domestic base supported by policy intervention is essential for meeting growing internal and export market demands. For instance, in December 2024, India's production of natural rubber (NR) increased by 8.6% from 7.89 lakh tons in FY21–22 to 8.57 lakh tons in FY23–24. The industry predicted that NR production would reach 8.82 lakh tons in FY24–25.

Sustainability Trends and Export Opportunities

With global emphasis on environmentally responsible sourcing, India is increasingly aligning its rubber production with sustainability goals. Initiatives like the Indian Sustainable Natural Rubber (iSNR) aim to ensure traceability, ethical practices, and compliance with international standards such as the EU Deforestation Regulation. These efforts improve India’s appeal as a rubber supplier on the global stage. At the same time, Indian rubber exporters are gaining traction in Africa, Southeast Asia, and Europe due to competitive pricing and growing reliability, which is creating a positive impact on the India rubber market outlook. The integration of sustainable practices enhances brand value and opens new markets, making sustainability a powerful driver of long-term industry growth. For instance, in October 2023, Bridgestone India, a division of Bridgestone Corporation, a world leader in sustainable mobility solutions and tires, pledged to adopt and assist one lakh smallholder rubber producers in Kerala's Idukki and Kottayam districts. Bridgestone India started "UNNATI, a Sustainable Natural Rubber Initiative," a ground-breaking effort designed to promote constructive change in the rubber sector, in partnership with the Netherlands-based NGO Solidaridad. The project intends to improve the lives of 5,000 smallholder rubber growers while advancing a sustainable natural rubber supply chain.

India Rubber Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India rubber market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type and application.

Analysis by Type:

• Synthetic Rubber
• Natural Rubber

Natural rubber leads the market, holding 58.5% of the market share. Natural rubber maintains a significant share in India's rubber market due to its essential role in the automotive industry, particularly in tire and tube manufacturing. Its inherent properties, such as high elasticity and resilience, make it ideal for applications requiring flexibility and durability. India's position as the second-largest consumer of natural rubber globally underscores its importance. Despite fluctuations in global production, domestic demand remains robust, driven by the growing automotive sector and the need for various rubber products.

Analysis by Application:

• Tire
• Non-Tire Automotive
• Footwear
• Industrial Goods
• Others

The tire segment dominates India's rubber market with a significant share of 65.2%. This is due to the country's expanding automotive industry. Rubber is essential for manufacturing tires, offering durability and performance. The increasing production of vehicles, including two-wheelers and electric vehicles, boosts tire demand. Additionally, the need for tire replacements in existing vehicles contributes to sustained rubber consumption. Government initiatives to improve infrastructure and road networks further stimulate vehicle usage, thereby increasing tire requirements. This consistent demand ensures the tire segment's leading position in rubber consumption.

Regional Analysis:

• North India
• West and Central India
• South India
• East and Northeast India

South India, particularly Kerala, Karnataka, and Tamil Nadu, remains a dominant force, accounting for 43.2% of the market share. Kerala alone accounts for a significant portion of the country's natural rubber production. The region's favorable climatic conditions, skilled labor force, and established rubber plantations contribute to its leading position. Moreover, the presence of numerous rubber-based industries, including tire manufacturing and rubber goods production, drives consistent demand. Government support through subsidies and research initiatives further strengthens South India's rubber sector, ensuring its continued prominence in the national market.

Competitive Landscape:

The India rubber market is highly competitive, featuring the presence of both international and domestic players. Key companies like Apollo Tyres, MRF Limited, CEAT, and JK Tyre & Industries, dominate the tire segment, while others like Rubber Products Ltd and GRP Ltd cater to industrial applications. The market is segmented into natural and synthetic rubber, with strong supply chains anchored in South and Northeast India. Competition intensifies around pricing, quality, and innovation, with companies investing in R&D for advanced rubber compounds. Strategic partnerships, capacity expansions, and sustainability initiatives are also shaping market dynamics. Import competition and raw material price volatility further influence the competitive environment within the India rubber market.

The report provides a comprehensive analysis of the competitive landscape in the India rubber market with detailed profiles of all major companies.

Latest News and Developments:

• April 2025: India launched iSPEED, an INR 145 crore initiative to support over 2 lakh smallholder rubber farmers in Northeast India and West Bengal. The five-year project will install 3,000 smokehouses and 3,000 sheet rolling machines, enhance skills, and improve quality standards to boost rubber productivity and farmer incomes.
• April 2025: Anlon Technology Solutions launched CleAnJet, an indigenously developed runway rubber and paint removal machine, for Noida International Airport. Built under the Make in India initiative, the machine reduces lifecycle costs and enhances aviation infrastructure, featuring mostly local components and co-developed technology meeting global performance standards.
• January 2025: The Rubber Board launched iSNR and INR Konnect to enhance India’s rubber value and production levels. iSNR ensures EUDR-compliant, traceable rubber for EU markets while INR Konnect links untapped plantation owners with adopters. Both aim to augment sustainability, productivity, and market access for Indian rubber growers.
• January 2025: Tyre makers Apollo, CEAT, JK, and MRF committed INR 100 crore to enhance rubber production in Northeast India and West Bengal under Project INROAD. Backed by the Rubber Board, the initiative focuses on farmer training and infrastructure, covering over 1.25 lakh hectares across 94 districts.

India Rubber Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India rubber market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India rubber market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India rubber industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.