{"id":36290,"date":"2026-08-24T10:39:37","date_gmt":"2026-08-24T05:09:37","guid":{"rendered":"https:\/\/niir.org\/blog\/?p=36290"},"modified":"2026-08-24T10:39:37","modified_gmt":"2026-08-24T05:09:37","slug":"synthetic-rubber-manufacturing-business","status":"publish","type":"post","link":"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/","title":{"rendered":"How India&#8217;s Tyre Boom and EV Growth Are Creating New Synthetic Rubber Startups Opportunities"},"content":{"rendered":"<p>The synthetic rubber industry of India is undergoing a turning point in terms of demand. Tyre manufacturers are growing in a fast pace, EVs are gaining traction at a pace faster than expected, and environmental laws are driving the entire chemical value chain towards greener production methods. These forces are driving a structural change in the synthetic rubber production, consumption and trading pattern in India.<\/p>\n<p>The <a href=\"https:\/\/chemicals.economictimes.indiatimes.com\/news\/industry-and-market\/synthetic-rubber-demand-gets-a-lift-from-tyres-evs-and-greener-production\/133340964\">Economic Times Chemicals <\/a>recent report was a perfect snapshot of this turnaround, pinpointing the demand for synthetic rubber to be receiving a shot in the arm from the tyres, EVs and cleaner production technologies. This is not a cyclical increase. Constructive market change.<\/p>\n<p>In the eyes of an entrepreneur, an MSME owner, an investor and every industrial startup founder, the transformation is one of the best manufacturing opportunities in India today. The window to enter, scale and grab a piece of market share is open, but it won&#8217;t last long.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87_1 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Related_Article_Rubber_and_Rubber_Products_Industry_Consultants_in_India\" >Related Article: Rubber and Rubber Products Industry Consultants in India<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#What_Recent_Reporting_Means_for_Business_Builders\" >What Recent Reporting Means for Business Builders<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Access_Complete_Business_Plan_Rubber_Rubber_Products_Manufacturing\" >Access Complete Business Plan: Rubber &amp; Rubber Products Manufacturing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Why_This_Industry_Is_Growing\" >Why This Industry Is Growing<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Tyre_Sector_Expansion\" >Tyre Sector Expansion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Electric_Vehicle_Fleet_Rollout\" >Electric Vehicle Fleet Rollout<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Greener_Production_Push\" >Greener Production Push<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Government_Policies_Incentives\" >Government Policies &amp; Incentives<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Get_Detailed_Insights_from_This_Book_The_Complete_Book_on_Rubber_Processing_and_Compounding_Technology_4th_Revised_Edition\" >Get Detailed Insights from This Book: The Complete Book on Rubber Processing and Compounding Technology (4th Revised Edition)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Manufacturing_Business_Opportunities_Six_Entry_Points_for_Entrepreneurs\" >Manufacturing Business Opportunities: Six Entry Points for Entrepreneurs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#1_Styrene-Butadiene_Rubber_SBR_Compounding_Unit\" >1. Styrene-Butadiene Rubber (SBR) Compounding Unit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#2_Nitrile_Butadiene_Rubber_NBR_Processing_Unit\" >2. Nitrile Butadiene Rubber (NBR) Processing Unit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#3_Rubber_Chemicals_Manufacturing_Unit\" >3. Rubber Chemicals Manufacturing Unit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Explore_This_Book_The_Complete_Book_on_Rubber_Chemicals\" >Explore This Book: The Complete Book on Rubber Chemicals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#4_High-Performance_Tyre_Cord_Fabric_Unit\" >4. High-Performance Tyre Cord Fabric Unit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#5_Recycled_and_Reclaimed_Rubber_Processing_Unit\" >5. Recycled and Reclaimed Rubber Processing Unit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#View_Full_Project_Details_Reclaimed_Rubber_Manufacturing_Project_Report\" >View Full Project Details: Reclaimed Rubber Manufacturing Project Report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#6_Rubber_Seals_Gaskets_and_Moulded_Components_Manufacturing\" >6. Rubber Seals, Gaskets, and Moulded Components Manufacturing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Import%E2%80%93Export_Opportunity_Analysis\" >Import\u2013Export Opportunity Analysis<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Import_Substitution\" >Import Substitution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Export_Markets\" >Export Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#International_Demand\" >International Demand<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Indian_MSME_Startup_Success_Stories\" >Indian MSME &amp; Startup Success Stories<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Apcotex_Industries_Limited\" >Apcotex Industries Limited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Rubfila_International_Limited\" >Rubfila International Limited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Precision_Rubber_Industries_Pune\" >Precision Rubber Industries (Pune)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Identify_high-growth_industries_before_others_do\" >Identify high-growth industries before others do<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#About_Niir_Project_Consultancy_Services_NPCS\" >About Niir Project Consultancy Services (NPCS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Industry_Data_Summary\" >Industry Data Summary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/#Conclusion_Act_Now_%E2%80%94_The_Rubber_Market_Window_Is_Open\" >Conclusion: Act Now \u2014 The Rubber Market Window Is Open<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading has-text-align-center\" style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Related_Article_Rubber_and_Rubber_Products_Industry_Consultants_in_India\"><\/span>Related Article: <a href=\"https:\/\/niir.org\/blog\/rubber-industry-consultants\/\">Rubber and Rubber Products Industry Consultants in India<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"What_Recent_Reporting_Means_for_Business_Builders\"><\/span><strong>What Recent Reporting Means for Business Builders<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to the <a href=\"https:\/\/chemicals.economictimes.indiatimes.com\/\">Economic Times Chemicals <\/a>report, three tailwinds are driving the synthetic rubber sector: skyrocketing tyre production, quick growth of EV fleet and a decisive shift towards greener, bio-based production.<\/p>\n<p>The forces are independent of each other, but they support each other. Rubber producers are looking to make more rubber for larger, higher-performance tyres for the passenger car, commercial truck, and new EV markets. Higher quality, lower rolling resistance rubber compounds are needed for EVs, where there is continued high import reliance. Regulating environmental requirements also necessitates changes by producers to transition away from petroleum-derived feedstocks and towards partial bio-based and\/or recycled rubber materials.<\/p>\n<p>In practice, demand is increasing from various sources at once. The domestic production has not matched the demand. In India, the demand for speciality synthetic rubber grades is high and the country is currently dependent on imports of these grades to cater to the industry needs. The market opportunity is exactly this space between the demand and the local production, where new businesses can be established.<\/p>\n<p>Entrepreneurs \u2013 tyre and rubber downstream supply chain looking for reliable domestic suppliers. Ancillary manufacturing of rubber products has received direct government support for MSMEs. For investors: The sector is eligible as per chemicals and petrochemicals PLI framework under consideration. For exporters: Indian rubber intermediates and finished rubber goods have increased in demand in Southeast Asia, Middle East and Africa.<\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Access_Complete_Business_Plan_Rubber_Rubber_Products_Manufacturing\"><\/span>Access Complete Business Plan: <a href=\"https:\/\/www.niir.org\/profile-projects-reports\/profiles\/rubber-rubber-products-rubber-based-industries-natural-rubber-synthetic-rubber-tyre-tire-rubber-chemicals-industrial-rubber-products-rubber-for-automobile-extruded-rubber-medical-adhesives-sealants-belt-footwear-gloves-injection-parts\/z,,3d,0,a\/index.html\">Rubber &amp; Rubber Products Manufacturing<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"Why_This_Industry_Is_Growing\"><\/span><strong>Why This Industry Is Growing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Tyre_Sector_Expansion\"><\/span><strong>Tyre Sector Expansion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>India produces the 3rd largest tyre in the world. MRF, Balkrishna Industries, Applao Apollo Tyres and CEAT are all implementing capacity expansion programmes as well. Upstream rubber compounding, rubber chemicals and speciality polymer feedstocks are needed for each new tyre plant. This is a demand that can be directly met by Indian MSMEs in the upstream value chain.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Electric_Vehicle_Fleet_Rollout\"><\/span><strong>Electric Vehicle Fleet Rollout<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>India has pledged to make a \u201cmajor leap\u201d towards electrification of its vehicle fleet by 2030. Speciality rubber is used in the EV for battery seals, cable insulation, vibration dampening and high-performance rubber. The majority of this speciality rubber is imported, mainly from South Korea, Germany and China. The domestic production of EV-grade rubber compounds is yet in its infancy, indicating a huge market opportunity, and the initial players will establish quality standards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Greener_Production_Push\"><\/span><strong>Greener Production Push<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With regulatory pressure from the Ministry of Environment, Forest and Climate Change (MoEFCC) and growing ESG considerations with global buyers, manufacturers are on a search for bio-based feedstocks, recycled rubber content, and cleaner manufacturing processes. The companies that invest in these technologies now will reap high prices from export markets and large Indian corporates with sustainability policies.<\/p>\n<p>By 2028, synthetic rubber is expected to see growth in the global market, reaching nearly USD 39.5 billion, according to industry research, which valued the 2023 market at around USD 32 billion. Asia-Pacific is the fastest-growing region, accounting for approximately 50% of the growth in global demand over this period, with India and China being the key markets. These are not business-as-usual numbers; instead, orders, capacity expansion contracts, and documented government infrastructure programs back them.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Government_Policies_Incentives\"><\/span><strong>Government Policies &amp; Incentives<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Indian government has created an extensive support mechanism for the chemicals, rubber and automobile components industry. Some of the key programmes which relate directly to the synthetic rubber entrepreneurs and MSME are:<\/p>\n<ul>\n<li>The <a href=\"https:\/\/heavyindustries.gov.in\/pli-scheme-automotive\">PLI Scheme by Ministry of Heavy Industries <\/a>provides a production linked incentive of INR 25,938 crore for advanced technologies related to automobiles &amp; auto components. Under this scheme rubber parts, tyre technology and sealing systems for vehicle electrification are eligible.<\/li>\n<li>The Department of Chemicals and Petrochemicals (DCPC) has indicated serious interest in the PLI benefits for the chemicals sector, which includes synthetic rubber precursors and downstream products.<\/li>\n<li><a href=\"https:\/\/www.investindia.gov.in\/sector\/chemicals\">Invest India \u2013 Make in India Chemicals<\/a> initiative is a proactive initiative by Invest India to promote the chemicals and rubber industry in India with a dedicated pipeline of chemical parks and industrial zones in various States like Gujarat, Rajasthan, Andhra Pradesh and Odisha.<\/li>\n<li>MSME Credit and Technology Support: Credit-linked capital subsidies of up to 15% on investments in eligible plant and machinery is available to the rubber compounding and processing units directly from the <a href=\"https:\/\/rubberboard.org.in\/\">Ministry of MSME \u2013 Technology Upgradation<\/a>.<\/li>\n<li>The Ministry of Commerce and Industry provides technology support, R&amp;D assistance and export development programmes to rubber manufacturers through the <a href=\"https:\/\/rubberboard.org.in\/\">Rubber Board of India <\/a>(RBI).<\/li>\n<li>State level Chemical Parks: Gujarat has created Gujarat Industrial Development Corporation (GIDC) chemical clusters to provide plug and play facilities, common effluent treatment and logistics connectivity to synthetic rubber processing units.<\/li>\n<li>DPIIT Startup Recognition: Tax benefits of <a href=\"https:\/\/www.startupindia.gov.in\/\">DPIIT Startup India Scheme <\/a>(3 years), fast-track patent mechanism, access to Fund of Funds for Startups in specialty chemicals and rubber processing.<\/li>\n<\/ul>\n<h3 class=\"PDq2pG_selectionAnchorContainer\" style=\"text-align: center;\" data-start=\"0\" data-end=\"60\"><span class=\"ez-toc-section\" id=\"Get_Detailed_Insights_from_This_Book_The_Complete_Book_on_Rubber_Processing_and_Compounding_Technology_4th_Revised_Edition\"><\/span><strong data-start=\"20\" data-end=\"60\">Get Detailed Insights from This Book: <\/strong><a href=\"https:\/\/www.niir.org\/books\/book\/complete-book-on-rubber-processing-compounding-technology-4th-revised-edition\/isbn-9788178331621\/zb,,102,a,0,0,a\/index.html\">The Complete Book on Rubber Processing and Compounding Technology (4th Revised Edition)<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>National Chemical Policy: The Department of Chemicals and Petrochemicals \u2013 National Chemical Policy aims to boost the Indian chemicals industry to USD 300 billion by 2025 and to USD 1 trillion by 2040, with special emphasis on synthetic rubber and speciality polymers.<\/li>\n<li>The <a href=\"https:\/\/zed.msme.gov.in\/\">ZED Certification Scheme \u2013 MSME Ministry<\/a>: This is a scheme that gives financial support and rating certification for MSMEs which is becoming mandatory from tyre OEMs as well as export buyers for rubber suppliers.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Manufacturing_Business_Opportunities_Six_Entry_Points_for_Entrepreneurs\"><\/span><strong>Manufacturing Business Opportunities: Six Entry Points for Entrepreneurs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The below opportunities are directly sourced from the Economic Times Chemicals demand and validated with the existing market structure:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Styrene-Butadiene_Rubber_SBR_Compounding_Unit\"><\/span><strong>1. Styrene-Butadiene Rubber (SBR) Compounding Unit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>SBR is the most widely consumed synthetic rubber in India, with tyre cord manufacturing and general rubber goods as primary end uses. Setting up a downstream SBR compounding unit \u2014 blending SBR with carbon black, processing oils, accelerators, and antioxidants \u2014 requires an investment of INR 1.5\u20133 crore for a small MSME-scale plant.<\/p>\n<p>Why this opportunity emerges: as tyre companies expand capacity, they increasingly outsource rubber compounding to specialised vendors. This reduces their capital commitment and creates a stable demand pipeline for compounding MSMEs operating at 500\u20132,000 MT annual capacity.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Nitrile_Butadiene_Rubber_NBR_Processing_Unit\"><\/span><strong>2. Nitrile Butadiene Rubber (NBR) Processing Unit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>NBR is the workhorse rubber for oil-resistant seals, gaskets, hoses, and O-rings used across automotive, industrial machinery, and hydraulics. Apcotex Industries \u2014 India&#8217;s only domestic NBR manufacturer \u2014 operates at 100% capacity utilisation with 70\u201375% of domestic NBR requirements still met through imports. This import dependency creates a direct opportunity for processing units that can convert NBR feedstock into finished rubber products for automotive OEMs and industrial buyers.<\/p>\n<p>Investment range: INR 2\u20135 crore depending on automation level and product complexity. EBITDA margins for NBR finished products typically range from 14\u201320%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Rubber_Chemicals_Manufacturing_Unit\"><\/span><strong>3. Rubber Chemicals Manufacturing Unit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Accelerators (CBS, MBTS), antioxidants, vulcanising agents, and processing aids are the chemicals that transform raw rubber into usable elastomers. India imports a large share of these inputs from China. The Make in India push and geopolitical de-risking have created a policy-supported window for Indian MSMEs to establish domestic rubber chemicals production.<\/p>\n<p>A unit producing 200\u2013500 MT of rubber accelerators or antioxidants annually can serve 10\u201320 tyre and rubber goods manufacturers from a single production facility. Capital requirement: INR 3\u20138 crore. Export potential to Southeast Asia and the Middle East is immediately actionable.<\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Explore_This_Book_The_Complete_Book_on_Rubber_Chemicals\"><\/span>Explore This Book: <a href=\"https:\/\/www.niir.org\/books\/book\/complete-book-on-rubber-chemicals\/isbn-9788178331218\/zb,,16b,a,0,0,a\/index.html\">The Complete Book on Rubber Chemicals<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_36292\" aria-describedby=\"caption-attachment-36292\" style=\"width: 848px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-36292\" src=\"https:\/\/niir.org\/blog\/wp-content\/uploads\/2026\/08\/Tyre-Boom-and-EV-Growth-Are-Creating-New-Synthetic-Rubber-Startups-1.webp\" alt=\"Synthetic rubber manufacturing business opportunities in India driven by tyre industry and EV growth\" width=\"848\" height=\"1264\" srcset=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/Tyre-Boom-and-EV-Growth-Are-Creating-New-Synthetic-Rubber-Startups-1.webp 848w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/Tyre-Boom-and-EV-Growth-Are-Creating-New-Synthetic-Rubber-Startups-1-201x300.webp 201w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/Tyre-Boom-and-EV-Growth-Are-Creating-New-Synthetic-Rubber-Startups-1-687x1024.webp 687w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/Tyre-Boom-and-EV-Growth-Are-Creating-New-Synthetic-Rubber-Startups-1-768x1145.webp 768w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/Tyre-Boom-and-EV-Growth-Are-Creating-New-Synthetic-Rubber-Startups-1-512x763.webp 512w\" sizes=\"(max-width: 848px) 100vw, 848px\" \/><figcaption id=\"caption-attachment-36292\" class=\"wp-caption-text\">India&#8217;s tyre industry expansion, EV growth and demand for sustainable materials are creating new opportunities in synthetic rubber manufacturing.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"4_High-Performance_Tyre_Cord_Fabric_Unit\"><\/span><strong>4. High-Performance Tyre Cord Fabric Unit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Tyre cord is a synthetic fabric \u2014 predominantly polyester or nylon \u2014 embedded in the rubber matrix of tyres to provide strength and dimensional stability. India produces tyre cord fabric, but demand from expanding tyre plants consistently outpaces supply. A tyre cord weaving and dipping unit represents a capital-intensive but high-margin entry into the tyre supply chain.<\/p>\n<p>Investment range: INR 15\u201340 crore. This segment better suits industrial promoters with existing textile or polymer processing capabilities who want to enter the rubber supply chain.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Recycled_and_Reclaimed_Rubber_Processing_Unit\"><\/span><strong>5. Recycled and Reclaimed Rubber Processing Unit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The shift toward greener production, highlighted in the Economic Times Chemicals report, creates a direct commercial opening for recycled rubber processors. Devulcanised rubber and reclaimed rubber can substitute 15\u201330% of virgin synthetic rubber in many non-critical applications. India generates over 1.1 million tonnes of end-of-life tyres annually, representing a substantial raw material base.<\/p>\n<p>A reclaimed rubber unit processing 1,000\u20133,000 MT annually requires INR 1\u20133 crore in capital and generates stable revenues from rubber goods manufacturers seeking cost reduction and sustainability compliance. This is the entry point most directly aligned with current environmental regulatory trends.<\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"View_Full_Project_Details_Reclaimed_Rubber_Manufacturing_Project_Report\"><\/span>View Full Project Details: <a href=\"https:\/\/www.niir.org\/profile-project-reports\/profile\/1794\/reclaim-rubber-manufacturing-plant-detailed-project-report-profile-business-plan-industry-trends-market-research-survey-manufacturing-process-machinery-raw-materials-feasibility-study-investment-opportunities-cost-revenue-plant-economic.html\">Reclaimed Rubber Manufacturing Project Report<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"6_Rubber_Seals_Gaskets_and_Moulded_Components_Manufacturing\"><\/span><strong>6. Rubber Seals, Gaskets, and Moulded Components Manufacturing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The EV sector\u2019s demand for high-quality rubber seals is growing rapidly. These seals protect battery enclosures, cable management systems, motor housings, and thermal management modules. They require precision moulding in clean rooms, with strict dimensional accuracy and documented quality systems. These requirements create barriers that protect margins without requiring enormous capital.<\/p>\n<p>An MSME entering the EV or automotive sector with a well-equipped compression and injection moulding shop can target Tier-1 supplier qualification. An investment of INR 2\u20136 crore can support this setup. Tier-1 qualification can provide long-term pricing stability and repeat orders.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Import%E2%80%93Export_Opportunity_Analysis\"><\/span><strong>Import\u2013Export Opportunity Analysis<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Import_Substitution\"><\/span><strong>Import Substitution<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>India currently imports speciality synthetic rubbers including EPDM (ethylene propylene diene monomer), polychloroprene (neoprene), and high-performance NBR grades. Total rubber imports contribute significantly to the chemicals trade deficit. Government policy actively incentivises domestic production of these grades, and tyre OEMs have signalled willingness to shift to domestic suppliers who can meet quality specifications.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Export_Markets\"><\/span><strong>Export Markets<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Indian rubber goods manufacturers already export to the US, EU, Southeast Asia, and the Middle East. As domestic rubber chemicals and compound quality improves, the export addressable market expands. ASEAN countries \u2014 Thailand, Vietnam, Indonesia \u2014 are active importers of rubber chemicals and compounded rubber. The EU&#8217;s expanding sustainability procurement requirements favour Indian suppliers who can demonstrate lower-carbon production methods.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"International_Demand\"><\/span><strong>International Demand<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The global synthetic rubber market is expected to grow at a CAGR of approximately 4.2\u20135.7% through 2027\u20132028. This growth translates into consistent annual demand increases in absolute tonnage terms. India&#8217;s competitive manufacturing costs and government trade promotion support provide a strong advantage. Existing buyer relationships in rubber goods also position Indian manufacturers to capture a growing share of global demand.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Indian_MSME_Startup_Success_Stories\"><\/span><strong>Indian MSME &amp; Startup Success Stories<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Apcotex_Industries_Limited\"><\/span><strong>Apcotex Industries Limited<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Apcotex is the clearest Indian success story in domestic synthetic rubber manufacturing. Founded in 1980 as a division of Asian Paints, the company was spun off in 1991. The Mumbai-headquartered company built a dominant position in Nitrile Rubber (NBR), High Styrene Rubber (HSR), and synthetic latex. Today, Apcotex is the only Indian manufacturer of NBR. It operates at 100% capacity utilisation and generates annual revenues exceeding INR 1,000 crore. Its journey from a chemical industry spinoff to a sector leader demonstrates the value of focused specialisation. This strategy has created durable competitive moats, even against global majors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Rubfila_International_Limited\"><\/span><strong>Rubfila International Limited<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Kerala-based Rubfila International is a mid-sized manufacturer of high-quality rubber thread \u2014 a specialised synthetic and natural rubber product used in garments, medical bandages, and industrial applications. The company exports to over 30 countries and competes directly with Malaysian and Thai producers. Rubfila exemplifies how focused product specialisation within the broader rubber category can build a globally competitive MSME from an Indian base.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Precision_Rubber_Industries_Pune\"><\/span><strong>Precision Rubber Industries (Pune)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This Pune-based MSME manufactures precision moulded rubber components for automotive OEMs including Tata Motors, Mahindra, and international Tier-1 suppliers. The company entered with compression moulding for commercial vehicle door seals and expanded into injection-moulded components for passenger vehicles. Today it supplies rubber vibration isolation mounts and battery tray gaskets for EV platforms \u2014 a direct example of an MSME riding the EV rubber demand wave reported by Economic Times Chemicals.<\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Identify_high-growth_industries_before_others_do\"><\/span><a href=\"https:\/\/www.niir.org\/startup-selector\">Identify high-growth industries before others do<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"About_Niir_Project_Consultancy_Services_NPCS\"><\/span><strong>About Niir Project Consultancy Services (NPCS)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Niir Project Consultancy Services (NPCS) is one of India&#8217;s most respected industrial consultancy and project advisory firms. With decades of experience serving entrepreneurs, MSMEs, large industrial houses, and government bodies, NPCS provides end-to-end support for new manufacturing ventures in chemicals, rubber, plastics, and allied sectors.<\/p>\n<p>NPCS services relevant to synthetic rubber entrepreneurs include:<\/p>\n<ul>\n<li>Detailed Project Reports (DPR): Techno-economic feasibility reports covering plant layout, machinery specifications, manpower requirements, capital cost estimates, working capital analysis, and profitability projections.<\/li>\n<li>Market Research: Primary and secondary research on demand patterns, import-export dynamics, competitive landscape, and pricing trends for synthetic rubber and downstream products.<\/li>\n<li>Technology Consultancy: Identification of appropriate process technologies, equipment vendors, and quality standards for SBR compounding, NBR processing, rubber chemicals, and recycled rubber units.<\/li>\n<li>Feasibility Studies: Independent assessment of commercial viability, ROI analysis, and risk evaluation for greenfield and brownfield rubber manufacturing projects.<\/li>\n<li>Bank Loan Assistance: Preparation of detailed project reports in formats accepted by nationalised banks, SFCs, and SIDBI for MSME loan applications.<\/li>\n<\/ul>\n<p>For entrepreneurs considering entry into the synthetic rubber value chain, NPCS project reports provide a reliable starting point for investment decisions, bank loan applications, and government subsidy claims.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Industry_Data_Summary\"><\/span><strong>Industry Data Summary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&lt;tr&gt;MSME OpportunitySBR compounding, NBR processing, rubber chemicals, recycled rubber, moulded parts<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Parameter<\/strong><\/td>\n<td><strong>Details<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Industry<\/td>\n<td>Synthetic Rubber Manufacturing &amp; Processing<\/td>\n<\/tr>\n<tr>\n<td>Market Driver<\/td>\n<td>Tyre sector expansion, EV fleet growth, greener production mandates<\/td>\n<\/tr>\n<tr>\n<td>Investment Range (MSME)<\/td>\n<td>INR 1 crore (reclaimed rubber) to INR 40 crore (tyre cord fabric)<\/td>\n<\/tr>\n<tr>\n<td>Export Potential<\/td>\n<td>ASEAN, Middle East, EU, USA \u2013 rubber chemicals, latex, rubber goods<\/td>\n<\/tr>\n<tr>\n<td>Government Support<\/td>\n<td>PLI Automotive, PLI Chemicals (proposed), MSME CLCSS, Rubber Board India, ZED Scheme<\/td>\n<\/tr>\n<tr>\n<td>Risk Level<\/td>\n<td>Medium \u2013 raw material (petrochemical) price volatility; mitigated by long-term tyre OEM contracts<\/td>\n<\/tr>\n<tr>\n<td>Growth Outlook<\/td>\n<td>Strong \u2013 global market CAGR ~4.2\u20135.7%; India domestic demand growing faster than supply<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><iframe  id=\"_ytid_56787\"  width=\"750\" height=\"421\"  data-origwidth=\"750\" data-origheight=\"421\" src=\"https:\/\/www.youtube.com\/embed\/K9rvwW9t5K0?enablejsapi=1&#038;autoplay=0&#038;cc_load_policy=0&#038;cc_lang_pref=&#038;iv_load_policy=1&#038;loop=0&#038;rel=1&#038;fs=1&#038;playsinline=0&#038;autohide=2&#038;theme=dark&#038;color=red&#038;controls=1&#038;disablekb=0&#038;\" class=\"__youtube_prefs__  epyt-is-override  no-lazyload\" title=\"YouTube player\"  allow=\"fullscreen; accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen data-no-lazy=\"1\" data-skipgform_ajax_framebjll=\"\"><\/iframe><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion_Act_Now_%E2%80%94_The_Rubber_Market_Window_Is_Open\"><\/span><strong>Conclusion: Act Now \u2014 The Rubber Market Window Is Open<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>India&#8217;s synthetic rubber sector is at a genuine inflection point. Demand is rising from three directions simultaneously: expanding tyre production, EV fleet growth, and sustainability-driven demand for greener rubber inputs. Domestic supply has not kept pace. Import dependence remains high across multiple synthetic rubber grades and downstream products.<\/p>\n<p>As Economic Times Chemicals reported, this demand lift is structural, not cyclical. The tyre sector&#8217;s capacity expansion is committed capital. The EV fleet targets are government-mandated. The sustainability requirements are contractually embedded in global supply chains.<\/p>\n<p>For Indian entrepreneurs and MSME founders, this means the market is already moving in your favour. The question is not whether to enter \u2014 it is which segment to enter, at what scale, and with what product focus.<\/p>\n<p>Six clear manufacturing opportunities exist today: SBR compounding, NBR processing, rubber chemicals production, tyre cord fabric manufacturing, recycled rubber processing, and EV-grade moulded rubber components. Each suits a different capital base and technical capability profile.<\/p>\n<p>Government policy support \u2014 from the Rubber Board to PLI frameworks to MSME credit subsidies \u2014 has never been more comprehensive. International demand from ASEAN, the Middle East, and the EU adds export upside to a strong domestic demand story.<\/p>\n","protected":false},"excerpt":{"rendered":"The synthetic rubber industry of India is undergoing a turning point in terms of demand. Tyre manufacturers are&hellip;","protected":false},"author":24,"featured_media":36291,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":26,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","footnotes":""},"categories":[18199,15722,20749,17384],"tags":[21425,21421,21423,21422,18128,21420,21424],"industry":[],"class_list":["post-36290","post","type-post","status-publish","format-standard","has-post-thumbnail","category-automobile-industry-opportunities","category-chemical-industry","category-industry-news-business-opportunities","category-manufacturing-business-ideas","tag-reclaimed-rubber","tag-rubber-business","tag-rubber-industry-india","tag-rubber-manufacturing-business","tag-synthetic-rubber","tag-synthetic-rubber-manufacturing","tag-tyre-industry","cs-entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Synthetic Rubber Manufacturing Business in India: 6 Opportunities<\/title>\n<meta name=\"description\" content=\"Explore 6 profitable Synthetic Rubber Manufacturing Business opportunities in India driven by tyre growth, EV demand, import substitution.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Synthetic Rubber Manufacturing Business in India: 6 Opportunities\" \/>\n<meta property=\"og:description\" content=\"Explore 6 profitable Synthetic Rubber Manufacturing Business opportunities in India driven by tyre growth, EV demand, import substitution.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.niir.org\/blog\/synthetic-rubber-manufacturing-business\/\" \/>\n<meta property=\"og:site_name\" content=\"Niir Project Consultancy Services\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-24T05:09:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/Tyre-Boom-and-EV-Growth-Are-Creating-New-Synthetic-Rubber-Startups.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1672\" \/>\n\t<meta property=\"og:image:height\" content=\"941\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"P.K. 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Chattopadhyay","pronouns":"he\/him","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.niir.org\/blog\/wp-content\/litespeed\/avatar\/3662e7afd36f344fe355fb0ede1d751d.jpg?ver=1789822521","url":"https:\/\/www.niir.org\/blog\/wp-content\/litespeed\/avatar\/3662e7afd36f344fe355fb0ede1d751d.jpg?ver=1789822521","contentUrl":"https:\/\/www.niir.org\/blog\/wp-content\/litespeed\/avatar\/3662e7afd36f344fe355fb0ede1d751d.jpg?ver=1789822521","caption":"P.K. Chattopadhyay"},"description":"P. K. Chattopadhyay is a seasoned Project Consultant with over 45 years of hands-on experience in project consultancy across diverse industries. He has guided hundreds of companies and entrepreneurs through project planning, feasibility studies, and industrial setup \u2014 turning business ideas into practical, scalable ventures. A prolific author of business and startup-focused books, P. K. 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His core expertise spans manufacturing projects, market analysis, and business viability assessment \u2014 making his work an indispensable resource for anyone building a sustainable and profitable business from the ground up.","sameAs":["https:\/\/www.linkedin.com\/in\/p-k-chattopadhyay-466751406\/"],"url":"https:\/\/www.niir.org\/blog\/author\/p-k-chattopadhyay\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/posts\/36290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/comments?post=36290"}],"version-history":[{"count":2,"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/posts\/36290\/revisions"}],"predecessor-version":[{"id":36294,"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/posts\/36290\/revisions\/36294"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/media\/36291"}],"wp:attachment":[{"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/media?parent=36290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/categories?post=36290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/tags?post=36290"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.niir.org\/blog\/wp-json\/wp\/v2\/industry?post=36290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}