An excess supply of natural gas in the global market resulting into cheaper gas prices is restoring the economic
Low cost and uninterrupted supply of power and gas are of paramount importance in pushing growth of this industry.
“The glass and ceramics segment is heavily dependent on LNG supplies to run its plants and machineries and the regime of depressed gas prices will enable such enterprises to run with margins to keep them viable and profitable,” adds Gupta.
Lower energy cost is also expected to make these sector more competitive in the global market as well.
While the industries are relishing cheaper energy inputs, what is impacting their growth prospects is the lack of required demand both in the domestic and global markets. “More than the cheaper capital, industries here want government to boost consumption demand in the country,” says Gupta.
This way we can offset some of the ongoing contraction in our exports.
He adds that a large number of Indian MSMEs manufacture goods for the real estate sector which remains depressed due to high interest costs. The revival of India’s real estate sector is a must to help MSMEs leverage the cheaper gas inputs as half of the goods used in the construction industry comes from MSMEs. Analysts expect that India’s glass and ceramics industry is poised for sustained growth powered by demand for construction which is estimated to grow on account of various fiscal incentives given to infrastructure development, increase in income levels and availability of a range of financing options for housing.