Mahindra Group Chairman Anand Mahindra gave a shout-out to Morbi in Gujarat, which is known for its ceramic industry.
In a post on X, Mahindra shared a video of the city and praised the ‘Morbi effect.’ He also urged Indian businesses to look at such developing industries to compete with China.
“Can Indian businesses compete with China? Maybe we’re not looking in the right places for success stories. I was delighted to see this video on the ‘Morbi’ effect. Agile, small-town entrepreneurs—The ‘bahubalis’ of India,” Mahindra wrote.
The clip shared by Mahindra mentioned how Morbi has developed as a production hub, producing 90% of India’s ceramics. The small town in Gujarat, also known as India’s hidden ceramic capital, produces nearly 13% of the world’s total ceramic production. Almost 1000 families have been engaged in the business since the 1930s, covering an area of 50*9 km.
They have built a tight-knit community and passed knowledge from generation to generation. The industry creates nearly 4 lakh jobs. Another fascinating feature mentioned in the clip was the ceramics produced in Morbi competed with China’s competitive prices and the quality of Italy.
Challenges of Morbi’s ceramic industry
However, Morbi’s ceramic industry is facing several challenges due to reducing domestic and international demand. The industry is seeking tax relied measures on the gas it uses, requesting a shift from VAT to GST and permission for input tax credit claims, according to a report by the Times of India (TOI). The industry uses almost 30 lakh standard cubic metres of gas in a day.
Exports have also suffered a blow due to many factors, such as anti-dumping duties and global trade concerns. Countries including Saudi Arabia, Qatar, and Taiwan impose anti-dumping duties ranging from 50% to 106%. Exports have fallen in the US due to the process of imposing anti-dumping duties, the report said.
There was a decline in exports to Kazakhstan, Uzbekistan and Azerbaijan due to trade sanctions imposed on Iran by the US, impacting the Bandar Abbas port trade route. An alternative route for exports increases the cost of the goods significantly. The manufacturers are unable to increase prices due to stiff competition.
