Rubber industry bears the brunt of Iran war: AIRIA chief

Rubber is a valuable component of numerous products used in human day-to-day lives. Imagining a world without rubber is something impossible. Established in 1945, the All India Rubber Industries Association (AIRIA) — the apex of body of the industry — has its headquarters in Mumbai, while extending its presence through regional offices in Mumbai, Kolkata, Delhi and Chennai.

Against the backdrop of the West Asia crisis, DH’s Mrityunjay Bose spoke to newly-appointed AIRIA President Anay Gupta.

“Volatility in crude oil prices has increased the cost of synthetic rubber and related petrochemical inputs, leading to higher production expenses,” Gupta said. 

Following are the excerpts of the interview: 

Has there been any change in the rubber industry because of the West Asia crisis?

The West Asia crisis has significantly impacted the rubber industry through indirect but powerful channels. Volatility in crude oil prices has raised the cost of synthetic rubber and related petrochemical inputs, leading to higher production expenses. Simultaneously, disruptions in key shipping routes have caused higher freight charges, longer delivery timelines, and increased insurance costs, which affects the smooth flow of raw materials. For import-dependent markets like India, this has created supply uncertainty and raised the overall cost of procurement.

Currency fluctuations have further increased pressure, making imports more expensive. Consequently, companies are shifting toward diversified sourcing strategies and maintaining higher inventories to manage risks, which has tightened supply and put upward pressure on prices. pressure on prices across the industry.

Are medical, industrial, and consumer applications driving the surge in rubber demand?

The demand story of rubber in India is no longer one-dimensional —it’s a multi-sector surge. Healthcare continues to consume large volumes through gloves and critical supplies, while industrial growth is accelerating demand for high-performance components used in machinery, infrastructure, and engineering systems.

Add to this the ever-expanding consumer market, and rubber quietly becomes a backbone material across industries. What’s happening is not a temporary spike—it’s a structural shift where multiple sectors are expanding simultaneously, reinforcing demand from all directions.

Are consumer goods emerging as India’s next big driver for rubber demand?

Absolutely—and faster than most expected. India’s consumption economy is evolving, and rubber is riding that wave. From footwear to home essentials, everyday products are embedding more rubber-based materials. components than ever before.

With rising incomes and aspirational buying, consumers are choosing better-quality, longer-lasting goods, which indirectly increases rubber usage per product. This shift signals a deeper transition: rubber demand is no longer driven only by industry, but increasingly by lifestyle. Consumer goods are not just contributing—they are becoming a defining growth pillar.

Is the Indian rubber industry turning eco-friendly without anyone noticing.

Quietly, but decisively—the industry is changing. Sustainability is no longer a buzzword; it is becoming a business necessity. Companies are integrating recycled materials, exploring bio-based alternatives, and investing in cleaner production technologies. Export-oriented manufacturers, in particular, are aligning with global ESG expectations, making eco-friendly practices a competitive advantage. What makes this transformation interesting is its subtlety—it’s happening behind factory walls, not in headlines. Yet, over time, it could redefine how the entire industry operates.

Are industrial automation and manufacturing expansion quietly boosting rubber usage?

Behind every automated system lies an invisible layer of rubber components that keeps it running smoothly. As India accelerates its manufacturing ambitions, the demand for precision-engineered parts—seals, gaskets, insulation, vibration-control elements—is rising steadily. Automation doesn’t reduce material demand; it upgrades it.

Machines require higher-quality, more durable materials, and rubber fits that role perfectly. This is a silent growth driver—less visible than consumer demand, but its impact is far more consistent and long-term.

Rubber prices in India have seen a spike of 30–40 per cent due to global uncertainty and import challenges?

India’s rubber market is no longer insulated from global shocks—it is reacting sharply to them. A mix of geopolitical tensions, volatile crude prices, and disrupted supply chains has tightened availability, pushing prices upward at an aggressive pace.

Import dependency, especially for certain grades, has exposed the industry to freight surges and currency fluctuations, pressures. At the same time, domestic production hasn’t scaled fast enough to cushion the demand surge. The result is a classic squeeze: limited supply meets rising demand, fueling price spikes of 30–40 per cent and forcing manufacturers to rethink.