Synopsis : India’s ceramics industry has been hit hard as gas shortages triggered by the West Asia conflict forced over 400 factories to shut down. The crisis has disrupted production, exports, and livelihoods, exposing the risks of heavy dependence on imported energy.
India’s thriving ceramics sector is facing a severe setback as an ongoing energy crisis has forced more than 400 factories to shut down, leaving thousands of workers without jobs. The disruption, driven by global geopolitical tensions, has brought production to a standstill in key industrial hubs.
Morbi Falls Silent Amid Crisis
At the center of this crisis is Morbi, which produces nearly 90% of India’s ceramic output and exports tiles worldwide.
Factories that once operated round-the-clock kilns are now silent. Machinery lies idle under layers of dust, and only a handful of workers remain to manage leftover stock.
Industry leaders describe the situation as alarming, with operations halted for weeks due to fuel shortages.
Dependence on Imported Gas Backfires
India relies heavily on imports to meet its energy needs:
Around 60% of LPG demand is imported
A majority of supplies pass through the Strait of Hormuz
However, the route has been disrupted following escalating tensions involving Iran, the US, and Israel, severely affecting supply chains.
Government Prioritises Households
To ensure essential needs are met, the government has prioritised LPG supply for households, healthcare, and agriculture, limiting availability for industries.
This has led to reduced production not just in ceramics, but also in sectors like:
Stainless steel
Plastics
Massive Impact on Jobs and Industry
The consequences have been widespread:
400+ factories shut down
Around 4 lakh workers affected
Nearly 1 million livelihoods linked to the sector at risk
The ceramics industry, valued at approximately ₹750 billion ($8.1 billion), is now facing one of its toughest phases.
Continuous Operations Make Shutdowns Costly
Ceramic manufacturing depends on continuous kiln operations at extremely high temperatures. Sudden shutdowns:
Damage expensive machinery
Increase restart costs
Lead to heavy financial losses
Industry experts warn that restarting operations is not simple and could take time even after supply improves.
Government Efforts to Stabilise Supply
To address the crisis, the government has taken several steps:
Boosted domestic LPG production
Imported fuel from countries like Australia and Russia
Facilitated safe passage of Indian LPG tankers
Encouragingly, Indian LPG carriers have started moving again through the Strait of Hormuz, raising hopes of gradual supply recovery.
Uncertain Road Ahead
While efforts are underway, the situation remains fragile. Recovery depends on:
Stability in West Asia
Restoration of global energy supply chains
Continued policy support
The crisis has highlighted India’s vulnerability to global energy shocks and the urgent need for diversification of energy sources.
Disclaimer : This article is for informational purposes only and does not constitute financial, economic, or policy advice. Industry conditions and government measures may change based on evolving global situations.
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