India is a major producer of several stone products. Marble, sandstone, granite, slate, quartz, and Kotahstone are all available through the Indian stone industry. Most of the industry is located in the southern part of the country with its depth of granite deposits, although there is a growing dimension to the industry with marble deposits located in Gujarat and Rajasthan.
The industry has been poised for a building boom throughout India for more than two decades. Despite improving economic conditions and rising population levels, the demand for stone products on the domestic front are still static. Building companies are in trouble because they have thousands of unsold flats, which has stalled the anticipated profits of the industry.
When the rise of artificial stone is added into this economic recipe, the export markets for the Indian stone industry are also struggling. The industry provides a handful of colors, which makes it difficult to compete internationally. For that reason, much of the industry is looking to domestic demand for growth.
Note: Some of the statistics for the Indian stone industry have not been updated since 1998.
Important Indian Stone Industry Statistics
#1. Imports by the Indian stone industry tripled in 2017, reaching a total of 2.5 million tones. This is due to a liberalization of government import policies and more companies selling imported marble, which have reduced retail prices for consumers. (Litos Online)
#2. The General Sales Tax reduction to 18%, from 28%, has also helped to provide some retail relief for the domestic Indian stone industry. (Litos Online)
#3. India is the largest producers of dimensional stone products in the world, accounting for more than 27% of the global production each year. (PiedrasB2B)
#4. Over 16 million tons of stone production come from the Indian stone industry each year. Global production of stone products averages about 61 million tons per year. (PiedrasB2B)
#5. More than 2 million people are directly employed because of the opportunities provided by the Indian stone industry. (PiedrasB2B)
#6. Sandstone is the primary product offered by the Indian stone industry, with 5.4 million tons produced in 1998, the last year data is available. Granite comes in second, with 4.95 million tons produced by the industry. (State Department of Mines and Geology)
#7. About $301 million in exports of stone-related materials is produced by the industry each year. (PiedrasB2B)
#8. India is ranked as the top producer of granite and sandstone exports, fifth in flaggy limestone and marble, and 9th in exports involving finished stone products. (PiedrasB2B)
#9. 90% of the exports generated by the Indian stone industry are rough marble or granite blocks. (PiedrasB2B)
#10. Rajasthan, Karnataka, Andhra Pradesh, and Tamilnadu are responsible for most of the products available through the Indian stone industry. On its own, Rajasthan accounts for 90% of the marble that is produced by the industry each year. (PiedrasB2B)
#11. In 2013, India’s natural stone exports were valued at INR 300.63 crore. In 2016, the value of these exports was INR 428.54 crore. (TechSci Research)
#12. India provides 20% of the world’s granite resources. The industry also has more than two-thirds of the 300 shades of granite that are currently available in the world today. (Aro Granite Industry Ltd.)
#13. The estimated market size of the Indian granite industry is valued at $2.62 billion, with 97% of the total granite resources available to the industry remaining untapped. (Aro Granite Industry Ltd.)
#14. 39% of the estimated untapped reserves for granite in India are located in Rajasthan and Jharkhand. (Aro Granite Industry Ltd.)
#15. In 2014, India processed stone exports reached a total value of $1.11 billion. The exports to the United States were valued at $282 million. (Aro Granite Industry Ltd.)
#16. 25% of the exports created by the Indian stone industry are destined to the United States. (Aro Granite Industry Ltd.)
#17. The domestic use of stone in India has been rising since 2009, when 4.5 million tons of stone were utilized. In 2014, 6.1 million tons of stone were used. (Aro Granite Industry Ltd.)
Indian Stone Industry Trends and Analysis
The importance of the stone industry in India cannot be overstated. It has long been a global leader in the production of natural stone products. Growing competition from other regions, however, threaten to reduce the influence of this industry on a global scale. Colorful stone products from Brazil, along with a trend to purchase domestic products first, has created less demand for Indian products.
That has caused the Indian stone industry to look for domestic growth to continue an upward revenue trend. Because retailers are finding that imported finished stone products are cheaper than domestic products, the industry has been hurt by their pricing schemes and forced to reduce prices to stay competitive.
Those actions limit the potential for profits now and into the future. Although the mining industry accounts for more than 2% of the GDP each year for the country, the marble and stone market contributes just 10% of the revenues to the overall industry.
Domestic growth has been encouraging in recent years. An increase in export values to the United States has been helpful. For the Indian stone industry to continue growing, these trends must continue, with price stabilization, or the next 5 years for the industry will see declines in revenues and opportunities.