Further, during the current year, rubber exports have registered a robust 22 per cent growth, aided by the revival in the global automobiles industry.

According to All India Rubber Industry Association (AIRIA) convener (export promotion committee) MF Vohra, the restriction on imports of natural rubber will seriously affect the steady growth in export of all types of rubber manufactured products, including auto tyres and tubes. "The government's direction of importing natural rubber by advance licence holders through STC only, has put exporters in a difficult situation," Vohra said. The purpose of the advance licence scheme is to provide exporters raw materials at international prices on a duty-free basis. The scheme was formulated to make available international-quality raw materials for manufacturer of goods meant for export, especially when all grades of natural rubber required for manufacture of specific types of finished products are not available in India. According to Vohra, around 30,000 tonnes of natural rubber is expected to be imported under the advance licence during the current year.

"The imports will consist of various grades such as PLC and certain latex types which are not produced in India". There has been a high yield per hectare achieved by domestic rubber producers, but little has been done to raise quantity to international standards, Vohra felt. Enkay (India) Rubber Co 's joint managing director Raj Kumar Jain, speaking recently at the AIRIA said that "the acid test for the domestic rubber industry is to fight the rising competition from synthetic rubber and newer polymers. "We are still predominantly a natural rubber consuming industry, whereas the world has switched over to synthetics and now is embracing newer polymers," Jain said.

"It is evident that though protectionism is out, there is no substitute for perseverance and minimal overheads". Said Jain: Besides GATT and WTO, another significant change on the rubber horizon would be the rise of non-tariff barriers in the developed countries which will seriously affect our exports.

Among others, the developed markets have started implementing some of these like dot mark on rubber products or any other relevant assurance that the product/technology used is environment friendly. Many customers are insisting for certification of the final product being free from specific contamination of seemingly harmless elements.