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The tightening of the Unfair Competition Act (UCA) in the US, which stops US importers from buying products manufactured using pirated software or hardware, might be a boon for Indian rubber product exporters, as software piracy in India is low compared to its rivals like China and Indonesia.
Rubber Board Chairman Sheela Thomas today said rubber product exporters should be careful about the US anti-piracy law. If a rubber product manufacturer uses any pirated software or hardware, and sells the products to a US company, the company would be held responsible for possible damages.
This law has resulted in an obvious shift in preferences of US buyers, who are now looking at information technology (IT) rules-compliant firms for purchases. This trend will benefit India, Thomas said.
The US, which accounts for 12 per cent of India's total rubber goods exports, has been one of the most important traditional export markets for India. Exports to the US are growing at five per cent a year. However, the lndian rubber industry is facing tough competition from countries like China, which has 16.8 per cent share in rubber articles imported into the US, followed by Canada (11.7 per cent) and Indonesia (9.5 per cent) against 1.2 per cent of India.
While China has gained market share due to its low-cost offerings, other countries like Canada and Mexico benefited from the North American Free Trade Agreement. India's software piracy rate of 63 per cent is lower than other major rubber producing countries. It's 77 per cent in China, 72 per cent in Thailand and 86 per cent in Indonesia. Therefore, rubber manufacturers in India need to increasingly implement modern and value-added technologies in the process of manufacturing and designing innovative products, Thomas said.
