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Gujarat Ceramic Industry Booms, Set for Further Growth

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By Rediff Money Desk, AHMEDABAD   Dec 22, 2023 15:36

Gujarat's ceramic industry, led by Morbi's cluster, is thriving with global appeal. Vibrant Gujarat Summit and government support drive growth through domestic consumption and exports.
Gujarat Ceramic Industry Booms, Set for Further Growth
Photograph: ANI Photo
Ahmedabad, Dec 22 (PTI) Gujarat's Morbi district is home to the world's second-largest ceramic production cluster housing more than 1,000 units with an annual turnover of Rs 50,000 crore and export exceeding Rs 12,000 crore in the last fiscal, contributing significantly to the state's rapid economic growth over the years, industry experts have said.
The ceramic sector carries a huge potential for growth, aided by increasing urbanisation as well as the government's focus on cleanliness drive and housing schemes and implementation of the Goods and Services Tax (GST) creating a level playing field for both organised and unorganised players, they said.
Industry and government representatives believe the Vibrant Gujarat Global Summit (VGGS), a biennial investor meet that started in 2003, has increased the ceramic sector's global appeal.
Helped the state's entrepreneurial spirit and government support, the sector is looking forward to a growth trajectory that will be achieved by increased domestic consumption and export, they said.
The state's Morbi cluster, specialising in ceramic tiles, sanitary ware, industrial and technical ceramics, contributes a whopping 90 per cent to India's ceramic products market share, providing direct jobs to an estimated 4 lakh people.
As per government data, in the financial year 2022-23, Gujarat's ceramic sector export exceeded Rs 15,000 crore, representing 80 per cent of India's total overseas shipment in the segment. Of this, Morbi district's ceramic cluster, the world's second-largest, alone contributed Rs 12,000 crore.
"In the run up to the Vibrant Gujarat Global Summit 2024, the state government has organised the Vibrant Gujarat-Vibrant District event. The event is meant to facilitate government support to different sectors. Morbi's ceramic, Rajkot's machine tools and engineering and brass of Jamnagar are renowned all over the world," said state Agriculture Minister Raghavji Patel.
The 10th edition of the summit, a platform to explore business opportunities in Gujarat, will be organised from January 10 to 12 in Gandhinagar.
The ceramic hub in Morbi in the Saurashtra region has provided jobs to not just locals, but also people from other parts of the state and the country, said a worker engaged in the sector.
"Because of the ceramic industry, people like me have got employment here. People not only from Gujarat but from other states get employed here," said the worker.
President of Morbi Ceramic Association, Mukesh Kundaria, explained how the summit has helped the industry in the last two decades.
"The Morbi ceramic industry has benefited immensely from the Vibrant Gujarat Global Summit launched (in 2003) by Narendra Modi, the then-chief minister. The mega event has made Gujarat vibrant," he said.
"With a global allure and a promising trajectory, Gujarat's ceramic sector shows a glimpse of a future destined for international acclaim," Kundaria maintained.
Indian Ceramic Society President Sudipta Saha said the sector is well-placed for growth, with the country's per capita tile consumption being very low, at 0.59 compared to 4.4 in Vietnam.
Government's Swachh Bharat Abhiyan and housing schemes as well as its focus on infrastructure development and increasing urbanisation -- which is set to jump to 40 per cent in 2040 compared to 32 per cent in 2020 -- are factors that will help in further growth of the tile industry, said Saha.
"Greater awareness towards hygiene, an increase in disposable income, as well as levy of anti-dumping duty on imports from China are helping the industry. But we will have to look into key constraints as well," he said.
Quality is a key constraint hindering export, with the industry being fragmented with several small players not paying attention to maintaining product standards, Saha noted.
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