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iconIndian market [   January  2013 ]

 

Indian economy is fast-expanding, particularly automobile industry. IMF forecasts that Indian economy grows 6% in 2013. An institute for world economic forecasts that in 2040 India will be one of the world’s top three economic superpowers, viz USA, China and India. However, India faces obstacles on the path of Indian economic development as follows: 1. less developed infrastructure  - transport, electricity, etc. 2. shortage of power 3. delay of trade and investment rule easing 4. low agricultural productivity.

India is the world’s fourth largest natural rubber producer after Thailand, Indonesia and Malaysia. It is a big consumer of both natural rubber and synthetic rubber. It is the world’s second largest rubber consumer after China. The main rubber production regions of India are Kerala and Tamil Nadu with annual production of over 600,000 tonnes. In 2011, India possesses rubber cultivation area of 737,000 hectares and area under tapping of 491,000 hectares. It produced 893,000 tonnes and consumed 958,000 tonnes. In 2012, cultivation area is expected to increase to 752,000 hectares and area under tapping will increase to 504,000 hectares. It is expected to produce 920,000 tonnes and consume 1 million tonnes,according to Association of Natural Rubber Producing Countries. Most of the output is domestically consumed, particularly in car tire and motorcycle tire industry (65%).  The rest is used in shoe industry and hi-technology industry. Some are processed and exported to USA, Germany and UAE. However, India still needs to import more natural rubber due to insufficient quantities to satisfy domestic demand. In 2011, India imported 159,900 tonnes of natural rubber. Import in 2012 is expected to increase to 213,400 tonnes. The main natural rubber exporters to India are South Korea, China, Thailand, Indonesia, Japan, etc. It is expected that India will consume more natural rubber, resulting in higher imports due to large expansion of production sector, particularly in automobile industry and hi-technology industry. India has pushed forward free trade and industry policy since 2010. It is expected that industry and international trade of India will be of accelerated development in the near future.


From the above data, it suggests that Indian vast economic potential and growth affects ASEAN economic growth, particularly in rubber industry. Thus, government and private sector shall foster investment and international relation with India. One of the approaches to expand the market is participation in trade fair. It gives an opportunity for entrepreneurs to meet potential importers. This year, interesting Indian trade fairs are India Rubber Expo and Tyre Show organized by All India Rubber Industries Association on January 22-24, 2013 in Mumbai and Tyrexpo India organized by ECI International Limited on July 9-11, 2013 in Chennai, Tamil Nadu.

The Thai Rubber Association sees the importance of market expansion, especially Indian market and the great benefit of attendance in Indian trade fairs. Thai exporters will gain knowledge on new technology and will have opportunity to meet and negotiate with Indian importers to foster relationship, which is an important part to push forward Thai natural rubber export to India.

Signature
Mr. Chaiyos Sincharoenkul
President

 

 
 
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