"India's GDP expansion slowed to a six-year low of 5% in the quarter to 30 June 2019, prompting a downward revision of the year's GDP growth forecasts to 6.1%. The government has introduced a slew of measures to revive economic growth, including a massive cut in corporate taxes, easing credit, recapitalising banks, speeding up repayments and supporting exports. As for the ceramic industry, the economic slowdown has adversely impacted domestic tile demand [750 million sq.m in 2018, -1.3%, Editor], but there are many factors that are already fuelling a recovery in consumption. The most significant are the government's investments in infrastructures and residential building, including a project to develop 100 smart cities as well as the "Clean India", "Housing for all by 2022" and "Rural Housing Fund" programmes. Further factors that will help push up demand for ceramic tiles include the new real estate regulation and development act (RERA), the growth in urbanisation, the rise in disposable income of households and a favourable demographic profile. Moreover, the high growth potential of the domestic market is also attributable to the fact that tiles still account for a small share of the flooring market, with per capita consumption standing at just 0.6 sq. m/year.
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