India Tiles Industry: Why India’s tiles and marble industry isn’t worried about the Red Sea crisis
India’s tiles and marble industry is expected to maintain its growth momentum despite rising freight costs and supply chain disruptions triggered by geopolitical tensions in the Middle East, with strong demand from the country’s housing and construction sectors providing a cushion, according to industry stakeholders.The positive outlook comes as India’s residential real estate market continues to record healthy growth, even as the ongoing conflict in the Middle East and disruptions in the Red Sea shipping corridor have pushed up shipping costs, increased transit times and raised marine insurance premiums.Ceramic manufacturers, particularly those in Gujarat’s Morbi manufacturing hub, have also faced higher fuel costs and disruptions in the supply of imported propane and liquefied petroleum gas (LPG), which are widely used in production.However, industry players believe India’s expanding domestic manufacturing capabilities and sustained real estate demand will help offset the impact of global supply chain challenges.
Strong housing market supports demand
According to the latest CREDAI-Liases Foras report, India’s primary housing market recorded transactions worth more than Rs 8.46 lakh crore in 2025, marking a 16% year-on-year increase.Homes priced above Rs 1 crore accounted for nearly 78% of the total sales value, indicating strong demand in the premium housing segment.Commenting on the outlook, Aparna Reddy, executive director of Aparna Enterprises Ltd, said the construction sector had remained resilient despite global uncertainties.“India’s construction sector continues to demonstrate remarkable resilience despite global uncertainties. While geopolitical developments have created temporary challenges in logistics, fuel availability and supply chains, the long-term outlook for the tiles and marble industry remains encouraging. Continued growth in housing, commercial real estate and infrastructure development is driving demand for high-quality, durable and sustainable surface materials,” she said, , as quoted by agency ANI.Reddy added that India’s strong domestic manufacturing ecosystem and increasing focus on innovation would help the industry navigate short-term disruptions while supporting long-term growth.
Premium homes, infrastructure to drive growth
Demand is also being supported by changing consumer preferences, with homebuyers increasingly opting for premium interiors, better-quality finishes and durable construction materials. Alongside residential demand, expansion in commercial real estate, hospitality projects and infrastructure development is expected to boost consumption of building materials.Sidharth Jain, president of NAREDCO NextGen NCR and director of Tulip Infratech, said higher logistics costs resulting from geopolitical developments were likely to remain a short-term challenge.“Housing demand, commercial expansion and infrastructure investments remain robust. Developers are increasingly focusing on quality construction and durable materials that enhance long-term value. We remain optimistic that the tiles and marble industry will continue to benefit from India’s urbanisation and construction-led growth story,” he said.Despite near-term cost pressures arising from global geopolitical uncertainties, industry stakeholders remain optimistic that India’s strong housing pipeline, rapid urbanisation and continued infrastructure spending will keep demand for tiles, marble and other building materials on a long-term growth trajectory.
