India’s Ceramic Tile Industry Faces Competitiveness Test as Global Capacity Expands and Demand Shifts Towards Value-Added Products: Equirus

IIndia’s ceramic tile
India’s ceramic tile exports recovered in CY25, rising 7.6% year-on-year to 565 million square metres, with export value reaching approximately €2 billion, according to Equirus Securities’ CY25 Global Tile Production & Consumption report. The recovery comes against a challenging global backdrop, with tile production and consumption declining during the year. While India continued to strengthen its position in international markets, expanding overseas manufacturing capacity, trade barriers and rising energy and freight costs are emerging challenges for the industry.

Global tile production declined 4% year-on-year to 14.4 billion square metres in CY25, while consumption fell 2.2% to 14.3 billion square metres. Global exports, however, rebounded 2.5% to 2.7 billion square metres. India’s export performance over CY20–25 remained stronger than that of several established exporting countries, with its tile export volumes recording a compound annual growth rate (CAGR) of 5%, compared with declines in China, Spain and Italy..

India remains the world’s largest exporter of porcelain tiles by volume, at approximately 442 million square metres, and ranks fourth by export value at around €1.7 billion. However, the price differential with established European producers highlights the industry’s positioning challenge. India’s average tile export price stood at approximately €3.6 per square metre, compared with €16.5 for Italy, €10.3 for Spain and €5 for China. This gap underlines the opportunity to strengthen value realisation through product differentiation, design, quality and premium offerings..

The report also highlights the expansion of tile manufacturing capacity outside traditional production centres. Africa’s tile production increased 26% year-on-year to 1.3 billion square metres in CY25, while consumption rose 23.6% to 1.5 billion square metres. Chinese investment has supported manufacturing expansion across overseas markets, including Africa, where local production could progressively reduce dependence on imports. The report notes that Chinese-backed manufacturing facilities outside China account for approximately 1.6 billion square metres of annual capacity, with actual output of around 1.2 billion square metres..

For Indian manufacturers, particularly those concentrated in Morbi, the evolving global landscape places greater emphasis on cost competitiveness and product positioning. Energy accounts for more than 30% of tile production expenses globally, making the sector vulnerable to fuel-price volatility. The fuel-supply crisis during March and April 2026 led to temporary closures of more than 700 factories in Morbi, while higher fuel costs prompted price increases. Elevated energy and freight costs, alongside trade-related restrictions and anti-dumping or countervailing duty investigations, could weigh on export competitiveness in FY27..

The report also points to changing product preferences, including demand for large-format slabs and premium surface finishes. For Indian manufacturers, moving beyond a predominantly volume-led, price-competitive model towards higher-value products could be important for improving export realisation and strengthening their position in international markets. Although the near-term outlook remains challenging, the report cites MECS forecasts indicating a gradual recovery in global tile production over the longer term, from 14.1 billion square metres in 2026 to 14.8 billion square metres in 2030, with Africa, non-EU Europe and Latin America expected to be among the stronger-performing regions.