Efforts by US tile manufacturers to impose anti-dumping duties of 400-800% on Indian tiles and wall tiles have raised concerns in the Indian ceramic industry, particularly in Morbi, the country’s ceramic hub. Industry leaders expressed fears that such a measure could severely damage the industry.
According to data from the Morbi Ceramic Association, India exported ceramic tiles worth Rs. 15,000 crore in 2023-24, with the US market accounting for a substantial Rs. 1,600 crore. The ceramic industry, with an annual turnover of Rs. 60,000 crore, employs over 5 lakh people directly and indirectly, making it a significant contributor to the Indian economy.
The Coalition for Fair Trade in Ceramic Tile, representing over 90% of US tile production, filed a petition on April 10th, requesting the federal government to impose tariffs on ceramic tile imports from India. The petition alleges that unfairly low-priced imports from India are harming domestic manufacturers. The proposed tariffs range from 408% to 828%.
Haresh Bopaliya, president of the Morbi Ceramic Tiles Association, expressed concerns that the proposed anti-dumping duty would set a negative precedent. He stated that the Indian industry had presented its case to the US government through an online portal.
Bopaliya highlighted that the anti-dumping duty, if implemented, would affect the competitiveness of Indian tiles in the US market. He added that the industry could withstand anti-dumping duties of up to 10%, but beyond that, it could be detrimental.
The industry has faced challenges in recent months, leading to a 10-15% decline in production. Despite these difficulties, the industry remained optimistic about the future, with 35-40 new factories being set up in the last eight months. However, the looming threat of the anti-dumping duty has cast a shadow over these expansion plans.
