According to a recent report in Ceramic World Review, Indian tile production and exports will continue to grow, but the Indian tile sector faces a challenge from the introduction of 42.9% antidumping duties on Indian tiles in the Gulf States.
“Indian tile production [1.145 billion sq.m in 2018, +6%] will continue to grow at an estimated rate of +8% in 2019 and +13% in 2020”.
This forecast was announced by Prem Narayan Trivedi, Chairman of H&R Johnson India and Past President of Indian Council of Ceramic Tiles & Sanitaryware at The Future of Ceramics conference held in Modena in November 2019.
According to the Indian manufacturer, the Indian ceramic tile industry will receive a boost from the tax reform and from the introduction of antidumping duties on Chinese tile imports. On the other hand, India’s manufacturing operations will be hindered by the volatility in the price of natural gas, which accounts for between 15% and 30% of production costs, and ever higher transportation costs.
Exports are also expected to continue the upward trend that has enabled India to double its volumes in 4 years [274 million sq.m in 2018, +20%] and become the world’s fourth largest exporter country in 2018 (probably the third in 2019) with exports amounting to 24% of its total output. This growth has partly been driven by the ability to win market shares previously held by China in countries and regions that introduced antidumping duties on Chinese ceramic tiles, such as EU, Brazil, Taiwan, and South Korea. This in turn has been made possible by investments in technology made in the last five years in the Morbi district with the aim of modernising factories, increasing production capacity and improving product quality.
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