All India Rubber Industries Association (AIRIA) has asked for the formation of an exclusive export promotion council for rubber products.
It is vital to leverage the country’s untapped export potential of rubber products, said the apex body of the sector.
According to AIRIA, a Rubber Products Export Promotion Council (Rubbexil) needs to be formed under the ministry of commerce and industry with a view to have a more focused support to export of rubber products from India.
Currently, export of rubber products is promoted through Chemicals and Allied Products Export Promotion Council (Capexil).
“Both Capexil and Rubber Board have given NOC for the formation of the new export promotion council. Union commerce minister Nirmala Sitharaman has been pro-active about the idea. The rubber industry is in a bid to speed up the formation of the new council, as this is crucial to the next surge of exports” AIRIA president Mohinder Gupta told FE.
The export turnover of rubber products from India has crossed R17,500 crore in 2014-15. As much as 30% of the rubber products manufactured by MSME sector in India is exported.
“Rubber industry has shown its mettle by accomplishing 15% CAGR in rubber products export over the last one decade. To get a better environment for export, industry would need a separate export promotion council,” said Gupta. “Sharper emphasis on labour intensive and widely spread-out sectors like rubber products would also give a fillip to the Centre’s new missions like Make-in-India and Skill India,” he added.
Currently there are around 5,000 MSME rubber units in the country manufacturing over 35,000 different rubber products and giving jobs to about 30 lakh people.