Indian Ceramic Tile Industry Faces Competitiveness Test Amid Global Capacity Shifts: Equirus
Mumbai, October 16, 2026: India’s ceramic tile exports recovered in CY25, rising 7.6% year-on-year to 565 million square metres with an export value reaching approximately €2 billion, according to a press release summarizing Equirus Securities’ CY25 Global Tile Production & Consumption report.
Despite the recovery against a backdrop of declining global production and consumption, expanding overseas manufacturing capacity, trade barriers, and rising energy and freight costs pose emerging challenges for the domestic industry. Global tile production fell 4% year-on-year to 14.4 billion square metres in CY25, while consumption dropped 2.2% to 14.3 billion square metres. Nevertheless, India maintained stronger export growth over CY20–25 compared to established exporters like China, Spain, and Italy, recording a 5% compound annual growth rate.
India remains the world’s largest exporter of porcelain tiles by volume at 442 million square metres, and ranks fourth by export value at €1.7 billion. However, India’s average tile export price stood at €3.6 per square metre, compared with €16.5 for Italy, €10.3 for Spain, and €5 for China, highlighting a positioning challenge and an opportunity to shift toward premium, value-added offerings.
The report highlights the expansion of overseas capacity, particularly in Africa, where production rose 26% year-on-year to 1.3 billion square metres. Chinese-backed facilities outside China now account for nearly 1.6 billion square metres of annual capacity, potentially reducing import reliance in regional markets.
For Indian manufacturers, especially in the Morbi cluster, global dynamics emphasize cost management and product differentiation. Energy costs account for over 30% of global production expenses, making the sector vulnerable to fuel volatility. Temporary closures of over 700 factories in Morbi during a March–April 2026 fuel-supply crisis underscore these pressures, which could weigh on export competitiveness in FY27 along with elevated freight rates and trade barriers.
Longer-term forecasts cited in the report indicate a gradual recovery in global tile production from 14.1 billion square metres in 2026 to 14.8 billion square metres in 2030, driven by growth in Africa, non-EU Europe, and Latin America.
