Gujarat: Exports Offer Lifeline as Domestic Market Flounders



Kalpesh Damor | Niyati Parikh | Times of India

Even as the domestic market continues to face challenges on the demand side, exports have come to the rescue of sectors such as pharmaceuticals, ceramics, chemicals and engineering. Export orders have not only helped these sectors stay afloat but also provided a cushion against slowing domestic demand.\

Tile-makers see a surge in exports

Ceramic tile-makers in Morbi — India’s largest cluster of ceramics — shipped tiles worth Rs 2,700 crore in the April-July. All big ceramic players across Gujarat and India are operating at 80-85% capacity as export demand remains robust. Domestic demand for ceramic tiles continues to languish with slow recovery of real estate industry. The export market is going strong, with many countries looking at sources other than China. There is also pent-up demand in markets.

“With anti-China sentiments across the world, and with the USA imposing heavy duties on tiles from China we foresee huge export potential for Indian companies,” said Kamlesh Patel, chairman and MD, Asian Granito India Limited. The recent reduction in gas price by the Gujarat government will also make locally made tiles globally more competitive.

“The tile-makers are receiving export orders from the US, UK, Indonesia, Mexico and Europe and the Middle-East,” said Nilesh Jetpariya, president, wall tiles division, Morbi Ceramics Association (MCA).

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