Total Granite resource in India is 46.23 billion cu m.
Accounts for 15% of world’s granite production
Export of granite and natural stones from India has been on the increase with every passing year.
The Industry grew at a healthy rate of 14.5% during upto 2014-15.
Major production is from Andhra Pradesh, Telangana, Rajasthan, Karnataka, Tamil Nadu and Gujarat.
In the FY 2013-14, the market size of India’s granite reached approximately USD 2.62 billion.
Around 50 percent of granite produced is exported.
India’s granite and natural stone products has almost 80% of its markets in United States and European Union. This is despite heavy competition in the price of finished products like monuments, slabs, tiles etc., and also in the export of dimensional blocks.
China, USA, Germany, Turkey and UK are major importing countries.
Indian granite and stone exporters had to face China, Brazil and Turkey, who are selling their stones at a lower price and India had to compete with them in the global market. This trend had reduced the profitability.
With their exclusivity, some of the Indian stones have been in tremendous demand worldwide, and are becoming more popular.
Natural stone products are the largest Forex earners in the mineral category. Iron ore being the second.
Indian Stone Industry has been already talking about responsibility towards generating rural employment, promote sustainable environment, provide assistance in the field of medical education, science and social welfare.
Indian Stone Industry has adopted latest technology in quarry sector and is continuously upgrading its technology.
Federation of Indian Granite & Stone Industry is making efforts to understand and adopt the demand pattern and the movement of the market.
Indian Stone Industry is keen to make Indian Stone a Brand in international market and for which they have been trying through foreign promotional trips, various stone festivals, meets, etc.
Stone Industry could become one of the big brands . It has the potential. All it needs is the government support to become the global brand.
Backed by increased demand from USA & newer markets export market may grow at a CAGR of 10% during 2014-19.
Dimensional Stone Industry employs a huge number of skilled and unskilled workers but the sector may potentially provide 6.42 million direct job opportunity.
Varying taxes across states. Non-uniform high VAT rate, Dead Rents and Royalties across states impacting industry competitiveness.
Uncertainty in lease grant period, infrastructural facilities and financing increasing project risks. Lesser leasing area, shorter lease period, non renewal provisions, lack of financing options and lack of focus from the government to improve infrastructure agonizes the industry.
Small lease areas impacting quarry efficiency. In spite of collective measure and intentions from the miners, complete mechanization is often not attainable due to the state policy of restriction in leasing areas.
Lease grant takes inordinately long time. Government policies and lack of prioritization resulted in non-issuance of new lease/ renewal of leases.
Quality, Recovery and Texture varies from one quarry to another so as its marketability
Recovery percentage is difficult and hence so is the project return. In spite of collective measures and intentions from the miners, recovery percentage cannot be predicted by the conventional standard exploration. Hence reserve estimation varies widely. Recovery of dimensional stone blocks is usually very low- 10% 15%.
Designating dimensional stones as “Ornamental Mineral”. Bringing Ornamental Stones under Centre’s jurisdiction
Declaring ornamental stones industry as a “Thrust Sector” and notifying “Mineral Zone” for such ornamental minerals.
Having a single window approval system from Ministry of Mines Government of India.
Time bound disposal of lease applications and regulatory approvals
Allowing import of granite blocks under OGL Scheme.
Establishing timeline for lease grant process
Single window approval system
Empowering “Ornamental Mineral” committee to become a regulatory body and giving authority to monitor state policies.
Enactment of GCDR and MDCR and setting maximum lease area to be 50 Ha, depending on the mineral occurrences.
Benchmarking of the lease grant period and set pan-India limit at least for 30 years.
Timely communication of regulator and government
Tax structure rationalization. Non-uniform tax structures across the states impacting industry competitiveness in the global market