Tyre exports have been witnessing robust growth in the last three years and are poised to cross Rs 12,000 crore during the current fiscal, the industry body, Automotive Tyre Manufacturers’ Association (ATMA), has stated.

Quoting data from the Commerce Ministry, ATMA said tyre exports from the country during April-September stood at Rs 6,314 crore. From Rs 8,824 crore in 2015-16, tyre exports went up to Rs 9,658 crore in 2016-17 and crossed the Rs 10,000 crore mark for the first time to stand at Rs 11,180 crore in 2017-18.

“During the current year also, tyre exports have continued the momentum of the previous two years. The industry is expected to end the current fiscal with an export turnover of Rs 12,000 crore, as the order book position is healthy,” said Anant Goenka, Chairman, ATMA.

Indian manufactured tyres are exported to more than 100 countries, including the US and Europe. The US is the largest export destination for Indian manufactured tyres, accounting for 13 per cent of the total export turnover. Germany is the second largest, with more than 7 per cent share.

India produces one of the largest varieties of tyres manufactured anywhere in the world. In 2007-08, tyre production stood at nearly 80 million units. The same has increased to nearly 180 million units in FY 2017-18, added Goenka.

According to him, the industry has the potential to increase its export turnover if a level playing field is granted, matching other tyre manufacturing countries. Natural rubber is a critical raw material, but the gap between domestic supply and demand is widening. Imports of NR are imperative for tyre plants to run. However, the policy environment is highly restrictive. Custom duty on NR imports is at 25 per cent, much higher than the rate of duty levied by any other NR importing country.

There are port restrictions on import of NR, which have been lately removed on imports under advance authorisation. There are further road blocks in accessing natural rubber. The tyre industry needs to adhere to the pre-import condition for NR imports against (tyre) export obligation.

Further, the export obligation period (for tyres) has been reduced from 18 months to only 6 months, making it tough for the industry to access a raw material which is in short supply domestically. The tyre industry has urged the Government for policy support to give a push to manufacturing, add to job growth and improve foreign exchange reserves.

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