Indian granite is one of today’s most popular trends in the West. Exporting granite out of India is today becoming one of India’s most lucrative export earnings, and the benefits to granite companies make it an amazing business opportunity.
Granite is an integral component required for construction that leads to it being traded all around the world. The export of granite from India has picked up significantly in recent years due to its superior quality and strength. Indian granite export data shows that over 145 countries in the world actively import Indian granite. Hence, it is plain to see that exporting granite from India is a viable and lucrative business option. However, there are certain rules and regulations that business owners involved in the granite export business need to keep in mind. Let us now take a deeper look at how to export granite from India the right way and why India is Paradise for Granite Exporters.
Export of Granite from India
Indian granite export data shows that granite possesses very high export potential. Over 145 countries import Indian granite worth $498 million every year. The granite export business mainly depends on the following five importing countries:
|2||United States of America||$40 million|
|4||Saudi Arabia||$13 million|
Exports to these five countries amount to over $394 million which is roughly 79% of the total granite export value. While Indian granite is used for everything from innovative and modern sculptures to memorials and buildings, it is heavily preferred for kitchen interiors. India has enjoyed being the world leader when it comes to the granite export business for quite some time now. The unmatched style, elegance and quality of Indian granite has helped it become a multi-million dollar foreign exchange commodity. Famous structures from across the globe, including the Vietnam War Memorial, Atomic Bomb Victims Memorial in Japan, and the Bruce Lee Memorial in Washington have all been made using Indian granite.
Check Here to More about: https://www.india.gov.in/topics/commerce/export
Granite Export Business in India
India serves as one of the world’s largest producers and exporters of granite, with the industry being worth over ₹25,000 crores. India is home to massive granite reserves, housing over 4 trillion cubic metres of granite. Additionally, Indian granite export data shows that only 3% of the total reserve has been explored as of now, ruling out the possibility of a supply shortage. India contributes roughly 15% of the total granite production globally. Additionally, India houses over 100 varieties of granite, making the stone available in different colours and textures, with 60 out of that 100 being commercially viable. The states in India that have the largest granite reserves are as follows:
- Tamil Nadu
- Andhra Pradesh
The abundance of supply and variety makes the granite export business very lucrative. So much so that almost 85% of the granite produced in India makes its way to importing countries. The export of granite from India occurs in the following ways:
|1||Crude or raw blocks||HS Code: 25161100|
|2||Blocks or slabs||HS Code: 25161200|
|3||Building stone||HS Code: 68022390|
|4||Polished blocks and tiles||HS Code: 68022310|
|5||Carved or processed granite||HS Code: 68029300|
India is most famous for its monumental granite or building stone granite, exporting over $919 million worth of it in 2014, against total exports of $1.5 billion. While white granite was historically linked to tragedy, helping make it the best choice for memorials, modern architects seem to be taking a new approach. Of late, Indian granite has been used in the construction of the American Consulate in Indonesia and for several Hilton and Hyatt hotels in the USA. Other countries that import monumental granite from India are Germany, UK and Turkey.
Challenges Faced by the Granite Export Businesses in India
Here’s a quick look at the major challenges faced by Indian granite exporters.
- Intense competition from China and Brazil
- Worldwide economic slowdown with regards to building and construction
- Insufficient government support
- High competition within the industry
- Rise of more stringent environmental norms
- The imposition of stricter mining-related laws
- Lack of market research regarding granite-block processing
- Use of outdated technology and equipment
- Inadequate infrastructure facilities for sourcing raw materials
However, there is a lot of scope for the granite export business in India, and exporters have been able to identify new markets for their products. Also, granite export from India to the USA has picked up in recent years due to the massive popularity of black granite in the USA. The top granite exporting companies as per Indian granite export data are as follows:
- Neeraj Granites
- RK Marble
- Sati Exports India Pvt Ltd
- Aditya Stonex
- ELANZA Export Pvt. Ltd
How to Export Granite from India
- The first thing entrepreneurs need to do to export granite from India is to incorporate their business as a legal entity in India. They can choose from a variety of options provided by the Indian government and choose a business structure that suits them perfectly
- Once they have registered their company with the Ministry of Corporate Affairs, they must apply for and obtain a company PAN. Next, business owners will have to open a bank account in the name of the company to process all financial transactions
- Next, entrepreneurs will need to register with the Director-General of Foreign Trade and obtain an Import export code. The last step of registration involves getting all the other documents required to clear customs
- Business owners can then make use of government agencies in importing nations to find interested buyers and vendors. Additionally, companies must register with export promotion councils and commodity boards to avail various benefits provided by the government
- Once they have enough potential buyers, they can start negotiating a fair deal for themselves
- Next, the entrepreneurs will need to contact a reputed shipping or freight agency to ensure their product reaches the buyers on time
- The last step involves customs clearance which can be made easier by availing the services of a customs housing agency
Documents Required to Export Granite from India
- Incorporation Certificate
- Company PAN
- GST and other tax registrations
- Import Export Code
- DGFT registration certificate
- Registration-cum-membership certificate from the EPCs
- Customs clearance documents, such as Bill of Lading and packing list
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