EXPORTS OF RUBBER PRODUCTS & AUTO TYRES & TUBES FROM INDIA

1. EXPORTS OF RUBBER PRODUCTS & AUTO TYRES & TUBES FROM INDIA C A P E X I L (India’s Premier Export Promotion Council) Set up by Ministry of Commerce & Industry, Govt. of India 7th August 2014

2. C A P E X I L • CAPEXIL (Formerly, Chemical & Allied Products Export Promotion Council), was set up on 28th March, 1958 by Ministry of Commerce, Government of India. • The vision of CAPEXIL is to promote India’s export of a wide spectrum of Chemical based and Allied products and thereby stimulate the country’s economic growth and help in employment generation. • CAPEXIL is a Multi Products Export Promotion Council and it has sixteen different group of products subdivided broadly under Mineral and Non-Mineral Sector. • Exports of Rubber Products & Auto Tyre & Tubes Panels falls under Non-Mineral Sector. • CAPEXIL has its headquarters in Kolkata and has regional offices in Mumbai, Delhi, Chennai & Kolkata.

3. C A P E X I L • CAPEXIL understand the various facets of international trade and assist the Indian business community to enhance their exports, attain and sustain a pre-eminent global standing. • CAPEXIL act as an intermediary in establishing business contacts between foreign importers and Indian exporters and thus, providing a two-way service as global trade facilitator • CAPEXIL undertake various promotional measures to promote exports. • CAPEXIL being an ISO 9001-2008 certified organization, endeavors to offer a full range of services including on-line services to Indian exporters and foreign importers. • CAPEXIL has around 4500 member-exporters across India and their quality products enjoy the preference of all major markets across the globe.

4. CAPEXIL AND ITS SERVICES • An Interface between the Government and the members regarding Trade and Policy related matters. • Participation in national/international trade fairs, organizing seminars/buyer-seller meets. • Dissemination of trade enquiries. • Preparation of market reports. • Analysis of Indian export trend abroad. • Collection and dissemination of global trade data. • Disbursement of grants through various market assistance programmes. • Publicity & Promoting the “Made in India” brand. • Services to Overseas buyers.

5. TOP 10 GLOBAL EXPORTERS FOR RUBBER AND ARTICLES THERE OF (CHAPTER 40)

6. GLOBAL EXPORTS OF RUBBER PRODUCTS (CHAPTER 40) 4-DIGIT H.S. CODE WISE

7. GLOBAL EXPORTS OF RUBBER ARTICLES (CHAPTER 40) 4 DIGIT H.S. CODE WISE

8. TOP 10 GLOBAL IMPORTERS FOR RUBBER AND ARTICLES THERE OF (CHAPTER 40)

9. TOP 5 COUNTRIES CONSUMPTION FIGURES OF RUBBER All data are in ‘000 tonnes SOURCE – INTERNATIONAL RUBBER STUDY GROUP

10. PER CAPITA RUBBER CONSUMPTION OF THE WORLD

11. INDIA’S SHARE IN GLOBAL EXPORTS

12. PERCENTAGE SHARE IN RUBBER EXPORTS

13. EXPORTS OF AUTO TYRES & TUBES FROM INDIA OVER THE LAST 5 YEARS Value in US D Million

14. ITEM WISE EXPORTS OF AUTO TYRES & TUBES FROM INDIA

15. EXPORTS OF RUBBER MANUFACTURED PRODUCTS OVER THE LAST 5 YEARS Value in US$ Million

16. ITEM WISE EXPORTS OF RUBBER MANUFACTURED PRODUCTS FROM INDIA

17. INDIAN RUBBER PRODUCTS EXPORTS – STRENGTHS • Indian Rubber Products have grown over 15% CAGR for the past decade. • Exports of Automobile Tyres & Tubes from India have grown over CAGR 21% for the last 10 years. • With an extensive plantation sector, indigenous availability of raw materials and a growing automobile hub, India is a major player in the global rubber industry. • India rubber industry is basically divided into two sectors - tyre and non-tyre. The tyre sector produces all types of auto tyres, conventional as well as radial tyres and exports to advanced countries like USA, EU etc. • The non-tyre sector comprises the large, medium scale, small scale and tiny units. It produces high technology and sophisticated industrial products. The small-scale sector accounts for over 50% of production of rubber goods in the non-tyre sector.

18. INDIAN RUBBER PRODUCTS EXPORTS – STRENGTHS • The Indian rubber products have been exported over 90 countries in the world including USA, Russia, UK, Bangladesh, Italy, Nepal, Germany, Oman, France, Saudi Arabia, UAE, African countries etc • Rubber industry in India has evolved over a century from plantation-based raw rubber production to manufacture of technologically-advanced rubber products. The industry comprises small and large rubber growers, nursery owners, rubber processors, traders, synthetic and reclaimed rubber producers, tyre and non-tyre product manufacturers/exporters, rubber-wood processors, workforce and consumers in their millions. • The Rubber Industry is highly labour and energy intensive. The Indian Rubber Industry comprises about 450/500 large / medium scale units and nearly 5500 Small and Tiny units.

19. INDIAN RUBBER INDUSTRY – AN OVERVIEW

20. 1st In Natural Rubber Productivity. 2nd Largest In Natural Rubber Consumption. 5th Largest Producer Of Natural Rubber. 4th Largest Global Rubber Consumer. Huge Scope For Rubber Consumption As Per Capita Consumption Presently is 1.1 Kg China Which Is 5kg. Developed Nations At 12 Kgs. Fast Emerging As Global Automotive Hub. India- A Certified Manufacturer Of Quality Rubber Products As Our Exports Have Been Growing At More Than 20% YoY For More Than 10 Years. Availability Of Technologists Though Short, Largest Amongst Rubber Producing And Consuming Nations. INDIAN RUBBER SECTOR - STRENGTHS

21. POLYMER CONSUMPTION vs PRODUCTION - 2013

22. IMPORTS RISE 100% IN 3 YEARS A LOSS TO EXCHEQUER & LOSS OF DOMESTIC JOBS INDIA’S IMPORTS OF RUBBER PRODUCTS Figures in Rs.Crores Source : MOC Export Import Data Bank

23. IMPORT DUTY ON FINISHED RUBBER PRODUCTS LOWEST IMPORT DUTY ON FINISHED GOODS

24. HIGHEST IMPORT DUTY ON RAW MATERIALS AMONG RUBBER CONSUMING NATIONS IMPORT DUTY ON RAW MATERIALS

26. 40% OF RUBBER PRODUCT MANUFACTURERS CLOSED DOWN BUSINESS SURVEY OF RUBBER PRODUCT MANUFACTURERS Source : RSDC

28. LATEX INDUSTRY • Latex being produced in India can be used to manufacture rubber product • Focus on using the under utilized installed capacity to produce Latex based rubber products such as balloons, condoms, Latex Foam, etc. • Assist Latex based rubber product manufacturers with technical marketing financial support. • Mechanism should be in place to ensure domestic Latex production is consumed in manufacture of Latex based rubber product.

29. STEPS TAKEN BY OTHER RUBBER PRODUCING NATIONS

30. EXPORTS CONCERNS • Non-Availability of Natural Rubber • Import Duty & Inverted Duty Structure • Imports of Increasing Finished/Rubber Products into India • Cess on Imported Rubber & Rubber Cess • Carbon Black – An Important Input for Manufacturing Rubber Products Placed on the Restricted List & under Safeguard Duty • Futures Trading in Rubber may be banned • Setting up Manufacturing Clusters or Industrial Parks for Rubber Products & Auto Tyre and Tubes • Purchase Tax on Natural Rubber by the State Government to be abolished • Inclusion of “Reclaimed Rubber” in Focus Product Scheme under Chapter 3 of FTP

31. EXPORTS CONCERNS • Withdrawal of Anti-Dumping Duty on Nitrile Rubber • Definition of SME Unit and Requirement for the Revision Thereof • Imports Should be Allowed Based on BIS Standards • Focus Product Scheme (FPS) & Focus Market Scheme (FMS), scrips should be directly credited to exporters account electronically. • 15% of the exporters make up 85% of the total exports from our country. This core group of 15% should be clearly identified to offer special facilitation & fast track clearances in the DGFT, Customs, Excise & other trade facilitators to address their needs on an urgent basis. • Income Tax Deduction Under Section 80 HHC

32. EXPORTS CONCERNS • Shipping Companies to Charge Cost Based Charges as it adds to Transaction Costs, DG Shipping should be appointed with Regulatory Powers on the same lines as Sri Lanka & Bangladesh • Drawback Rates should factor in surcharges & duties to offset the high cost of fuel, electricity, octroi, CST & other taxes without value cap. • Second Hand Machinery should be allowed to import at 0% custom duty against each authorization. • Labour laws to be made exporters’ friendly to encourage exporters to take commitments without fear of facing labor disputes and costs. • Development Commissioner for Rubber Industry • Credit facilities at cheaper rate

33. OPPORTUNITIES • Easy to achieve more than 15% Year on Year • Opportunity to increase our exports approximately by 20% year on year competing with China. • We have technologist, entrepreneurs to do business in the rubber product industry. • Per Capita Consumption of rubber is only 1.6 kg. in India viz-a-viz a global average of 3.12 kg. How do you make it happen ?

34. Even if we target to reach per capita consumption of 2 kgs our compounded average growth rate shall be 18% per annum. • Easy to achieve as 60% of the rubber products are used in the automotive industry and with a growth witnessed by the Indian Automotive Industry for domestic as well as exports rubber industry is poised for a similar growth. • Double digit growth in export year over year, Indian rubber industry has the proven capability of manufacturing the right quality of products which are accepted globally

35. Importing of raw materials used for rubber products manufacturing attract higher import duty than finished products. this inverted duty structure is causing manufacturers to become importers of finished products. Sectors like balloon, rice-dehusking rollers, rubber compounding fast disappearing from manufacturing horizon. Countries like Indonesia, Philippines, Vietnam, etc gearing up to manufacture of rubber products, which are traditionally exporting NR. CHALLENGES INDIA LOSING COMPETITIVE EDGE FAST

36. NEED FOR A NATIONAL POLICY ON RUBBER What is National Policy on Rubber ? • National Policy on Rubber will be one document which will provide the necessary vision and guide the industry for actions to be taken by various stake holders including the government, Rubber Board, CAPEXIL, AIRIA, ATMA, Planters, Manufacturers, Importers, Exporters etc. for the benefit of each segment resulting in propelling the entire sector to a growth rate it is capable of. • Make India one of the largest consumer and producer of Raw Material and finished rubber products for domestic as well as exports. • Create a Brand India Synonymous with Rubber and Rubber Products transforming the rubber industry into a global hub for sourcing, similar to the Indian IT Industry.

37. CONCLUSION • Critical to retain and escalate our position as a rubber consuming nation of upto 5 kgs per capita in next 10 yrs. • Establish “Brand India” like the IT sector for quality of rubber and rubber products made in India for global consumption. • We badly need a NATIONAL POLICY ON RUBBER. • Last but not the least the government must trust the industry and the industrialists.

38. THANK YOU