India's Enviornment Minister Jairam Ramesh's aggressive green activism is giving extra cold jitters to granite and other stone suppliers across the country. The minister worked overtime in 2010 rejecting green signals to Vedanta Resources, Posco and Lavasa and is now proposing to draft a policy where in more than half of the nation's forests could be moved out of exclusive state control.
Granite suppliers are increasingly becoming wary of him as they don't know which surprise may come their way in the name of policy change and turn their revenue chart head over heels.
Indian granite industry is already reeling under tremendous pressure and was left in dire strait during the recent downturn. Government didn't announce any mega relief packages and industry was clueless about its survival as the export orders came plummeting down one by one.
Last year, most of the granite importing countries such as the USA, China, Italy reduced their requirements and India’s granite and natural stone export was almost down by 15-20 per cent. Even though since September' 2010 the industry is in a recovery mode even then the actual recovery has been less than desirable. A quick view on the industry would help us understand what is really bugging the great Indian granite story !
Most of the experts are unanimous in admitting that India has been blessed by nature with the widest variety of the most beautiful granites. Yet, when it comes to processing facilities or their development, it has been way below its potential. Red tapism, bureaucracy blues and populist policy drafting has been India's nemesis for a long long time.
On the domestic front one of the major problem area for the industry has been the payment of 12.5 per cent service tax on the commission paid to agents abroad for getting business. The agents are willing to receive 3-4 % of business every month on a 10-12 per cent commission (based on invoice price). Moreover the tax paid to the government further erodes the leftover profit margins.
On the international front, china is fast emerging as a formidable competitor for the Indian granite suppliers. China is one country whose impact will be felt in almost each and every sector and the granite industry will not remain untouched.
On the positive side, post September 2010, the market recovery has begun. Also many reports suggest that granite is now emerging as one of the popular stone in the household & office construction purpose. Chances are, it could even dethrone marble from its top spot in the long run. Most airport projects in recent years have used granite as a flooring material.
All in all, it seems imperative that, this is a high time for the Indian granite suppliers to take some bold steps and find a way out of their current situation. All we can do is, hope that 2011 will help these suppliers evolve as an upcoming formidable force in the world market.
Granite suppliers are increasingly becoming wary of him as they don't know which surprise may come their way in the name of policy change and turn their revenue chart head over heels.
Indian granite industry is already reeling under tremendous pressure and was left in dire strait during the recent downturn. Government didn't announce any mega relief packages and industry was clueless about its survival as the export orders came plummeting down one by one.
Last year, most of the granite importing countries such as the USA, China, Italy reduced their requirements and India’s granite and natural stone export was almost down by 15-20 per cent. Even though since September' 2010 the industry is in a recovery mode even then the actual recovery has been less than desirable. A quick view on the industry would help us understand what is really bugging the great Indian granite story !
Most of the experts are unanimous in admitting that India has been blessed by nature with the widest variety of the most beautiful granites. Yet, when it comes to processing facilities or their development, it has been way below its potential. Red tapism, bureaucracy blues and populist policy drafting has been India's nemesis for a long long time.
On the domestic front one of the major problem area for the industry has been the payment of 12.5 per cent service tax on the commission paid to agents abroad for getting business. The agents are willing to receive 3-4 % of business every month on a 10-12 per cent commission (based on invoice price). Moreover the tax paid to the government further erodes the leftover profit margins.
On the international front, china is fast emerging as a formidable competitor for the Indian granite suppliers. China is one country whose impact will be felt in almost each and every sector and the granite industry will not remain untouched.
On the positive side, post September 2010, the market recovery has begun. Also many reports suggest that granite is now emerging as one of the popular stone in the household & office construction purpose. Chances are, it could even dethrone marble from its top spot in the long run. Most airport projects in recent years have used granite as a flooring material.
All in all, it seems imperative that, this is a high time for the Indian granite suppliers to take some bold steps and find a way out of their current situation. All we can do is, hope that 2011 will help these suppliers evolve as an upcoming formidable force in the world market.
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