On the supply side, production and imports of Rubber have been growing steadily – domestic production at 3.8 per cent CAGR and imports at 18.5 per cent. On the demand side, domestic consumption has been growing steadily at 6 per cent CAGR. India’s booming auto sector driving production of tyres and tubes and in turn, rubber consumption.

Industry size of plastics is estimated at US$ 6.6 billion. Domestic consumption is expected to double to reach nearly 12.5 million MT by 2010. Packaging expected to constitute over half of all plastics consumption in India, by 2010. It is estimated that 30,000 new machines and around US$ 9.5 billion of project investment in plastic processing machinery will be required over the next three years.

Kerala, Tamil Nadu and Karnataka are attractive states for investments in rubber, and for plastics, Gujarat and Maharashtra. MRF, Apollo Tyres, JK Tyres, Ceat Ltd, Bata India Ltd and VIP Industries Ltd are some major players in the rubber and plastics sector.