Can India's construction boom protect the tiles industry from global disruptions? Explained

India's tiles and marble industry is facing fresh challenges as geopolitical tensions in West Asia disrupt global shipping routes, increase freight costs and tighten fuel supplies. Yet, industry experts believe the country's booming housing market, expanding infrastructure pipeline and resilient domestic manufacturing ecosystem will keep demand for construction materials on a strong growth trajectory.

West Asia tensions have increased costs, but demand remains resilient

The ongoing conflict in West Asia and disruptions in the Red Sea shipping corridor have pushed up freight rates, extended shipping times and increased marine insurance costs for businesses importing raw materials.

Ceramic manufacturers, especially those based in Gujarat's Morbi manufacturing hub, have also been affected by higher fuel costs and disruptions in the supply of imported propane and LPG, both of which are widely used in tile production.

Despite these challenges, industry stakeholders believe India's domestic manufacturing capabilities and sustained demand from the real estate sector will help offset the impact of global supply-chain disruptions.

"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," said Aparna Reddy, Executive Director, Aparna Enterprises Ltd.

She 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.

Housing boom is driving sustained demand for tiles and marble

The positive outlook is closely linked to the strength of India's residential real estate market.

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 per cent year-on-year increase. Homes priced above Rs 1 crore accounted for nearly 78 per cent of the total sales value, highlighting strong demand in the premium housing segment.

This trend is also reshaping consumer preferences. Homebuyers are increasingly opting for premium interiors, durable construction materials and high-quality finishes, boosting demand for tiles and marble products.

Beyond residential projects, commercial real estate, hospitality developments and large-scale infrastructure projects are expected to further strengthen consumption across the building materials sector.

Industry expects long-term growth despite near-term pressures

Industry leaders say the current geopolitical challenges are likely to create only temporary cost pressures, while India's long-term urbanisation and construction story remains intact.

"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," said Sidharth Jain, President, NAREDCO NextGen NCR and Director, Tulip Infratech.

As India continues to witness rapid urbanisation, sustained infrastructure spending and rising demand for premium housing, the tiles and marble industry is expected to remain on a long-term growth path, even as global supply-chain disruptions and higher logistics costs pose short-term challenges.

(With inputs from ANI)