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Chapter-II
GROWTH AND PERFORMANCE OF
GRANITE INDUSTRY IN INDIA
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2.1 INTRODUCTION In this chapter the researcher has examined whether India can be a more
favorable and attractive industrial area for the development of granite industry now a
days and in future. India has been known for decades for its stone industry and it is
one of the biggest exporters of natural stone in the world. India uses natural stone as
building material more than many other countries. The researcher explores whether
Indian granite industries can increase their exports to world countries and how likely
it is that stone imports will increase there. Each country has unique soil and granite
stones. Granite from India is very different compared to world granite and it cannot be
copied. The unique appearance of Indian granite is definitely a competitive advantage
that should be considered when planning export strategies.
Many studies predict that India will grow economically in future and it will be
one of Asia’s giants. In that case Indian stone industries should start promoting their
material in advance to establish trade relations with world countries. The
infrastructure has suffered from over usage of the huge population and needs large
scale investments for the improvement of granite industry. In many Indian granite
stone industries, Asia, especially China, plays an important role. Chinese markets
have been growing each year and many surveys predict that markets will become
mature at some point and then there would be other countries to replace and take over
that role.
The granite industry constitutes an important segment of the mineral based
industries in Indian economy in terms of its contribution to the country’s Gross
Domestic Product (GDP), reserves and resources, employment, industrial production,
exports, imports and creation of entrepreneurial base. The government established the
Ministry of Mines, Indian Bureau of Mines (IBM), Centre for Development of Stones
(CDOS) in India, and also Department of Mines and Geology at state level, as the
nodal ministry for formulation of policies and central sector programmes and
schemes, their implementation and related coordination, to supplement the efforts of
the states for promotion and development of the granite industry in India.
32
The role of the Ministry of Mines and that of Indian Bureau of Mines (IBM) is
to mainly assist the states in their efforts to promote growth and development of the
granite industry to enhance their competitiveness and to generate additional
employment opportunities in rural areas and semi-urban areas in India. In addition,
the ministry attempts to address issues of country-wide common concerns and also
undertake advocacy on behalf of the granite industries. The specific schemes and
programmes undertaken by organization of the Ministry of Mines and Indian Bureau
of Mines seek to facilitate one or more aspects for the care of granite industry.
India has one of the best granite deposits in the world. With a varied diversity
of more than 110 shades, India accounts for over 20 per cent of the total granite
reserves across the world. The total granite reserves in the India are estimated around
13.87 Crore tonnes and it is one of the largest exporters of granite and granite
products in the world. Geologically the Southern and Eastern belts of the nation are
places where granite is available in abundance such as those in Tamil Nadu, Andhra
Pradesh, Karnataka, Maharashtra, Assam, Bihar, Rajasthan, Orissa, Meghalaya and
Madhya Pradesh.
Indian granite has become the most sought-after and extensively used stone
material in building construction and massive structural works throughout the world,
and it is well known in the international market, not only for its elegance and aesthetic
quality, but also for its durability.
In India, the granite stone industry has received a wider publicity and
corporate importance, only in the last few years. It is emerging now as a thrust-export-
area with several corporate houses, supported by expert professionals trained in all
aspects, entering the sector with sophisticated world-class machinery and making it an
organized one.
In order to give a new thrust to granite industry and for better growth, the
following aspects are to be taken care of. The steps taken by the government in 11th
five year plan for the development of granite industry are as follows:
Detailed exploration of the granite resources.
Handing over prospecting data to prospective investor at a reasonable cost.
33
To mention the need for establishing government cutting and polishing units
in the gamete belts for sample testing at low or reasonable rate.
More government incentives to attract investors.
Single window system for time to and disposal of lease application.
Development of internal market.
Organized training to prospecting cutter and miner.
Better infrastructural facilities. An organized professional approach based on co-operation with investors will
no doubt boost the industry in the study area during the coming years.
The CAPEXIL set up by the Government of India under the aegis of Ministry
of Commerce and Industry [formerly known as the Chemicals and Allied Products
Export Promotion Council] over the years has been playing an important role in
promoting exports of granite and granite based products. All India Granites and Stone
Association (Bangalore) has also been playing an equally important role in promoting
granite industry by organizing international trade fairs on granite and other stones in
India every four years. The leading exporters and importers have widely participated
in these trade fairs both from India and abroad. The interaction among the key players
in such gatherings help the industry to generate export orders and also acquire the
latest technical know-how about the developments in the granite industry in India.
2.2 FAVORABLE ENVIRONMENT FOR GRANITE INDUSTRY IN INDIA The availability of a considerable wealth of geologic resources both in terms
of quantity and quality constitutes a good starting base for the Indian granite
producers, but, on the other hand, maintaining and strengthening a top position among
the world leader countries implies also the presence of a series of suitable conditions
to be met or created, concerning the extraction of raw materials, the production of
finished stone elements and their trade and application for a the variety of possible
uses. To this purpose, the Indian granite industry can benefit from some positive
factors such as the relatively low cost of labour and cheaper prices of energy.
India has an abundance of port facilities for export of granite products to other
countries. This helps to increase the overall commercial strength of the granite
industry, especially in the foreign market. Domestic market is also an important
34
outlet, constituting for many countries an extremely relevant area of stone demand
and consumption, to the obvious advantage of granite stone entrepreneurs. However, a
number of initiatives are now in progress, particularly the startup of the newly
established Granite Technological Centers. Institutional support and sector association
should also be building up and fortified as high profile marketing and promotion
emerges as a key tool in penetrating the main mature and demanding consumption
markets.
While production in the granite industry has increased dramatically in the last
decade, the decline in prices has also been impressive.
Reduction in the cost of production as a result of technological improvement.
New granite quarries are being opened every day with new sources of granite
are being discovered everywhere and all the time in India.
The access to raw materials has become a key aspect of competitive advantage
in granite industry. In this regard Indian granite industry has been getting raw
granite easily when compared to other competing countries. This is due to more
of the existing forest areas with plentiful granite resources.
Some of the granite industries are setting up their own warehouses in the
different cities in India.
One of the most positive and favourable developments for the improvement of
granite industry is greater awareness. So its popularity is growing in the major
projects and construction sector.
The option of exporting granite products becomes favourable for granite
exporters after new economic reforms in India.
In addition to the above some of the efforts made by the government in order
to create the favorable conditions for a sounder development of the granite industry,
include the training of manpower, aiming at increasing the quarry recovery that is a
factor of capital importance in controlling the production cost and the profitability of
quarrying activity. For this purpose some of the following policies and strategies
taken by the central and state governments.
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2.3 POLICY FOR GRANITE INDUSTRY
Granite being a 'Minor Mineral' under the MMDR Act, 1957, the grant of
various mineral concessions for granite is administered under the Minor Mineral
Concession Rules (MMCR) of the respective State Governments. However, the
Granite Conservation and Development Rules (GCDR), 1999 aims at uniform rules
for conservation, systematic development and scientific exploitation of granite
resources. GCDR, 1999 inter alia, provides for: Prospecting Licenses (PL) prior to
granting mining lease, period of prospecting licenses, minimum and maximum period
of mining lease and for renewals, minimum and maximum area of lease, preparation
of scheme of prospecting, mining plan to be prepared for grant of mining lease, etc.
As per the export-import policy for 2009-14 and the Foreign Trade Policy (FTP). On
the other hand, worked granite blocks/tiles under sub-heading 680223 can be
imported freely. There are no restrictions on exports of granite and items under
Chapter 25 and Chapter 68 of the policy.
2.4 MINERAL RELATED POLICIES 2.4.1 NATIONAL MINERAL POLICY- 1993
In line with liberalization and globalization of India's economy, a new mineral
policy was formulated in 1993. This policy marks a watershed in the history of
development in the mineral sector in India. This policy recognizes the need for
encouraging private investment both domestic and foreign and the induction of state-
of-the-art technology in the Mines and Mineral sector. Under this policy, all the 13
minerals (Iron Ore, Manganese Ore, Chrome ore, granite, Diamond, Gold, Zinc,
Copper, Lead, Molybdenum, Nickel, Platinum group, Tungsten ore), which were
earlier reserved for public sector, were open for exploration and exploitation by the
private sector. Thus, the entire mining sector, except for atomic minerals, is now open
for private investment including foreign investment. Liberalized National Mineral
Policy 1993 was brought out to integrate the Indian Mineral Industry with the Global
Mineral Industry and aims to encourage inflow of Private investment both in domestic
and foreign Technology transfer/ upgradation to improve productivity and scientific
working.
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2.4.2 NATIONAL MINERAL POLICY- 2008 Minerals are a valuable natural resource being the vital raw material for
infrastructure, capital goods and basic industries. As a major resource for
development, the extraction and management of minerals has to be integrated into the
overall strategy of the country’s economic development. The exploitation of minerals
has to be guided by long-term national goals and perspectives. Presently, as these
goals and perspectives are dynamic and responsive to the changing global economic
scenario so also the national mineral policy (2008) has to be dynamic taking into
consideration the changing needs of industry in the context of the domestic and global
economic environment.
a. Basic Features
The country is blessed with ample resources of a number of minerals and has
the geological environment for many others.
It will be ensured that regional and detailed exploration is carried out
systematically in the entire geologically conducive mineral bearing area of the
country using state-of-the-art techniques in a time bound manner.
Minerals being a valuable resource, the extraction of mineral resources located
through exploration and prospecting have to be maximized through scientific
methods of mining, beneficiation and economic utilization.
Zero waste mining will be the national goal and mining technology will be
upgraded to ensure extraction and utilization of the entire run-of-mines.
Mining is closely linked with forestry and environment issues. A significant
part of the nation’s known reserves of some important minerals are in areas which are
under forest cover. Further, mining activity is an intervention in the environment and
has the potential to disturb the ecological balance of an area. However, the needs of
economic development make the extraction of the nation’s mineral resources an
important priority. A framework of sustainable development will be designed which
takes care of bio diversity issues and to ensure that mining activity takes place along
with suitable measures for restoration of the ecological balance. Special care will be
taken to protect the interest of host and indigenous (tribal) populations through
developing models of stakeholder interest based on international best practice. Project
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affected persons will be protected through comprehensive relief and rehabilitation
packages in line with the National Rehabilitation and Resettlement Policy.
Mining infrastructure requires a special thrust as the economic efficiency of
extraction of minerals from quarries, in this segment innovative structures will be
devised for developing and financing the infrastructure needs with the integration of
private and public participation. New sources of revenue will be developed for the
States and State agencies involved in mineral sector development and regulation will
be encouraged to modernize the areas of prospecting as well as regulation. These
aspects constitute the essentials of the new National Mineral Policy, 2008.
2.5 STRATEGIES FOR MINERAL DEVELOPMENT IN INDIA a. Manpower Development
Existing facilities for basic and specialized training shall be constantly
reviewed and upgraded from time to time to ensure that adequately trained manpower
at all levels is available for the development of mines and minerals. In order to
improve the competitive edge of the national mining industry, emphasis shall be laid
on mechanization, computerization and automation of the existing and new mining
units. The manpower development programme shall be suitably reoriented for the
purpose. As the mining sector takes off, the country will need more and more mining
engineers, geologists, geo-physicists, geo-chemists and geo-instrumentation
specialists. A comprehensive review of the sector’s manpower needs will be
undertaken and educational institutions will be geared to meeting these needs in the
medium and long term.
b. Safety of Mining and Quarry Workers Mining operations are hazardous in nature. Accidents happen and often result
in the loss of life or limb of persons engaged in it. Efforts must be directed towards
the development and adoption of mining methods which would increase the safety of
workers and reduce the accidents. Towards this end, participation and cooperation of
mining workers shall be secured. Steps should also be taken to minimize the adverse
impact of mining on the health of workers and the surrounding population.
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c. Infrastructure Development Mineral deposits generally occur in remote and backward areas with poor
infrastructural facilities which often inhibit their optimum development. A major
thrust needs to be given to development of infrastructural facilities in mineral bearing
areas with special emphasis on Linking Infrastructure. Financial resources available
with government will be leveraged to the maximum extent possible through recourse
to user charge based public-private-partnership arrangements wherever possible by
providing an institutional framework. An enabling environment will be created to
motivate large capacity mining companies to undertake construction of transportation
networks (road and rail) on their own. The contribution of mineral development to
regional and more specifically peripheral development, commensurate with the huge
investment in large mining projects, is substantial. In so far as public funding of
infrastructure is concerned, a much greater thrust will be given to development of
health, education, drinking water, road and other related facilities and infrastructure in
mineral bearing areas so that an integrated approach emerges, encompassing mineral
development, regional development and the social and economic well-being of the
local, and particularly, tribal population.
d. Mineral Development & Protection of Environment Extraction of minerals closely impacts other natural resources like land, water,
air and forest. The areas in which minerals occur often have other resources
presenting a choice of utilization of the resources. Some such areas are ecologically
fragile and some are biologically rich. It is necessary to take a comprehensive view to
facilitate the choice or order of land use keeping in view the needs of development as
well as needs of protecting the forests, environment and ecology. Both aspects have to
be properly coordinated to facilitate and ensure a sustainable development of mineral
resources in harmony with environment. Mining activity often leads to environmental
problems like land degradation in opencast mining and land subsidence in
underground mining, deforestation, atmospheric pollution, pollution of rivers and
streams, soil erosion due to disposal of solid wastes like overburden and so on, all
affecting the ecological balance of the area. Open-cast mining in areas with actual
forest cover leads to deforestation. Prevention and mitigation of adverse
environmental effects due to mining of minerals and repairing and re-vegetation of the
39
affected forest area and land covered by trees in accordance with the latest
internationally acceptable norms and modern afforestation practices shall form
integral part of mine development strategy in every instance. All mining shall be
undertaken within the parameters of a comprehensive Sustainable Development
Framework which will be so devised as to take all these aspects into consideration.
The guiding principle shall be that a miner shall leave the mining area in better
ecological shape than he found it. Mining operations shall not ordinarily be taken up
in identified ecologically fragile and biologically rich areas. Strip mining in forest
areas should be avoided and it should be permitted only when accompanied with
comprehensive time-bound reclamation programme. No mining lease would be
granted to any party, private or public, without a proper mining plan including the
environmental management plan approved and enforced by statutory authorities. The
environmental management plan should adequately provide for controlling the
environmental damage, restoration of mined areas and for planting of trees according
to the prescribed norms. As far as possible, reclamation and afforestation will proceed
concurrently with mineral extraction. Efforts would be made to convert old disused
mining sites into forests and other appropriate forms of land use.
In particular, compared to the results achievable with the full implementation
of the optimum strategy, the production of granite blocks in the granite industries will
be around 11 per cent lower. Moreover, the quarrying cost for the unit volume of
commercial block will be about 17 per cent higher, thus reducing the average profit of
the quarrying activity by the same factor. Transportation cost from the quarries to the
industries has been estimated to be 100 per cent higher if the recommended new
connecting roads will not be constructed; making the overall cost for the industry
about 22 per cent higher.
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2.6 PLAN EXPENDITURE ON GRANITE INDUSTRY IN INDIA
Table-2.1 Five Year Plan Outlays on Granite Industry and Minerals in India
(Rs. In. Crore) Sl. No Plan Total Outlay
1 6th 1389.05 2 7th 2439.96 3 8th 5523.43 4 9th 8865.45 5 10th 12476.61 6 11th 14561.83
Source: Five Year Plan Reports Note: Total outlay includes both the granite and other minerals
Table-2.1, explains the total outlay during various Five Year Plans on granite
and other mineral industries in India. The data shows that during the 6th plan period
the total outlay on granite and other minerals industry was about only Rs.1389.05
Crore and it roses to Rs.14561.83 Crore in 11th five year plan.
Table-2.2
GDP of Granite and Mining Industry in India-1999-2000 to 2009-2010 (Rs. In. Crore)
Sl. No Year GDP of Granite and Mining Industry 1 1999-2000 41,594
2 2001-2002 47,871
3 2002-2003 62,742
4 2003-2004 63,882
5 2004-2005 84,776
6 2005-2006 94,153
7 2006-2007 (R) 1,10,816
8 2007-2008 (P) 1,10,757
9 2008-2009(Q) 1,11,047
10 2009-2010(A) 1,14,421
Note: R = Revised P = Provisional Q = Quick Estimates A = Advanced Estimates.
Source: 1. Central Statistical Organization, Govt. of. India, New Delhi. 2. Statistical Abstract – 2010, Andhra Pradesh.
41
The data in Table-2.2 shows that gross domestic product of granite and mining
industry in India increased from Rs.41,594 Crore in 1999-2000 to Rs.62,742 Crore by
2002-03. Then it increased from Rs.63, 882 Crore in 2003-04 to Rs.94,153 Crore by
2005-06. Further it increased from Rs.1,01,816 Crore in 2006-07 to Rs.1,14,421 by
2009-10. From the above figures, it is concluded that the gross domestic Product of
granite (Rs.in.Crore) has increased considerably in India over the last decade.
Therefore, the share of the granite industry in GDP of India has registered a
considerable growth in Indian industrial sector.
2.7 GRANITE DEPOSITS/RESERVES IN INDIA
Huge deposits of granite occur across various states in the country. Exotic
varieties of black and multi-color varieties of granite are available in Karnataka,
Andhra Pradesh, Madhya Pradesh, Tamil Nadu and Uttar Pradesh. Further significant
granite deposits are also widespread in Jharkhand, Rajasthan, Orissa and Maharashtra.
The Table - 2.3 has stated that the reserves of black granite were 730.6
thousand tonnes in the year 1995 and the black granite reserves increased to 9527.1
thousand tonnes in 2010. The colour granite deposits increased from 2313.3 thousand
tonnes to 127948.9 thousand tonnes during the same period. Further, the un- classified
granite deposits increased from 38.27 thousand tonnes in 1995 to 1214.8 thousand
tonnes by 2010. The total deposits of granite in India increased from 3082.2 thousand
tonnes in 1995 to 138690.9 thousand tonnes by 2010. The information in the above
table has evaluated that the deposits of granite in India have increased over the past
two decades.
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Table-2.3
Deposits/Reserves of Granite in India (In. Tonnes)
Sl.
No
Type/Year Black Percentage of
Growth Colour Percentage of Growth Unclassified Percentage of
Growth Total Percentage of Growth
1 1995 730623 __ 2313363 __ 38277 __ 3082263 __
2 2000 8602687 1077.45 117870459 4995.20 2275025.55 5843.8 128748174 4077.07
3 2005 9481530 10.22 101719071 -13.70 1077405 -52.64 112278003 -12.80
4 2010 9527064 0.48 127948983 25.79 1214853 12.76 138690900 23.52
Source: Various Indian Minerals Year Books, IBM, Ministry of Mines, India
43
Table - 2.4 Granite Deposits/Reserves of Various States in India
(In. Tonnes)
Sl. No Name of the State 1995
% Share to Total Reserves
2000 % Share to Total Reserves
2005 % Share to Total Reserves
2010 % Share to Total Reserves
1 Andhra Pradesh 6900 0.22 8362619.4 6.50 7217670 6.43 7217670 5.202 Assam 616560 20.00 1751850 1.36 1751850 1.56 1751850 1.263 Bihar N.A 0.00 2632836 2.04 2632836 2.34 2632836 1.904 Chhattisgarh N.A 0.00 150171.51 0.12 150171.51 0.13 150171.51 0.115 Gujarat 70680 2.29 1258641 0.98 1263888 1.13 25505841 18.396 Haryana 40800 1.32 102000 0.08 102000 0.09 102000 0.077 Jharkhand 57315 1.86 26542092 20.62 26542092 23.64 26626020 19.208 Karnataka 608958 19.76 29220197 22.70 27923034 24.87 28013679 20.209 Kerala 1632 0.05 11514.9 0.01 6264 0.01 8424 0.0110 Madhya Pradesh N.A 0.00 18812940 14.61 5982252 5.33 5982252 4.3111 Maharashtra 979683 31.78 3476540.7 2.70 3476541 3.10 3476541 2.5112 Meghalaya N.A 0.00 859401 0.67 859401 0.77 859401 0.6213 Orissa 22764 0.74 6404513.4 4.97 5529180 4.92 5529180 3.9914 Rajasthan 605088 19.63 25438224 19.76 25575624 22.78 27571995 19.8815 Tamil Nadu 61020 1.98 2139895.7 1.66 1678305 1.49 1678305 1.2116 Uttar Pradesh N.A 0.00 1484457 1.15 1484457 1.32 1484457 1.0717 West Bengal 10863 0.35 100278.6 0.08 100278 0.09 100278 0.07
All India 3082263 100.00 128748173 100.00 112275844 100.00 138690901 100.00
Source: Various Indian Minerals Year Books, IBM, Nagpur.
44
The Table - 2.4 shows the granite deposits of various states in India. In the
above table Karnataka State possesses the highest reserves of granite in India with
22.70 per cent followed by Jharkhand and Rajasthan States recorded with 20.62 and
19.76 per cent while the lowest per cent of granite reserves by Haryana and West
Bengal with 0.08 per cent in 2000. Further, in 2010 also, Karnataka, Jharkhand and
Rajasthan States have occupied major position with 20.20, 19.20 and 19.88 per cent
of granite reserves. Then the least percentage of granite reserves was existed in Kerala
State with 0.01 per cent. Thus the total reserves of granite in India were estimated at
13, 86, 90,901tonnes by 2010.
2.8 AVERAGE DAILY EMPLOYMENT IN GRANITE INDUSTRY IN INDIA
Table-2.5 Year-Wise Average Daily Employment and Output in
Granite Industry in India From 1998 to 2011 (In.Persons)
Sl. No Year
Average Daily Employment (In. Persons) Output
(In. 000 Tonnes) O/C Surface Total
1 1998 3625 615 4240 502 2 1999 3639 746 4385 393 3 2000 4438 859 5297 346 4 2001 4110 1901 6011 395 5 2002 4519 1445 5964 339 6 2003 4846 1366 6212 471 7 2004 5108 1645 6753 619 8 2005 4492 1437 5929 353 9 2006 4910 1511 6421 527 10 2007 5110 1555 6665 870 11 2008 6127 1952 8079 1383 12 2009 6350 2017 8367 1479 13 2010 6560 2091 8651 1366 14 2011 6710 2150 8860 1417
Source: 1. www.indiastat.com 2. DGMS Annual Reports (2005- 11)
45
3625
615
3639
746
4438
859
4110
1901
4519
1445
4846
1366
5108
1645
4492
1437
4910
1511
5110
1555
6127
1952
6350
2017
6560
2091
6710
2150
0
1000
2000
3000
4000
5000
6000
7000
No.
of P
erso
ns
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year
Fig.2.1: Year-Wise Average Daily Employment and Output in Granite Industry in India From 1998 to 2011
O/CSurface
46
The selected year-wise average daily employment and output with the
composition of opencast and surface (A/G) activities of granite industry in India from
1998 to 2011may be seen in the Table-2.5 and Fig-2.1. It can be observed that the
average daily employment in opencast activities has varied in various years in granite
industry in India. The average daily employment in opencast activities in 1998 was
3625 persons and it increased up to 5108 by 2004. But in 2005 and 2006, the average
daily employment was declined to 4492 and 4910 persons respectively. From 2007
onwards the average daily employment of opencast mines was showing an increasing
trend. By 2011 the opencast average daily employment increased to 6710 persons.
The data shows average daily employment on the surface activities of granite
industry for the year 1998 was 615 persons and it increased to 2150 persons during
2011. But the data shows that some of the fluctuations in average daily employment
on surface activities in India between 1998 to 2011. Further the total average daily
employment was 4240 persons in 1998 and increased to 8860 persons by 2011. The
data also indicates the performance of granite industry in producing the average daily
output in India. The average daily output was 502 tonnes in 1998 but, it declined to
471 tonnes by 2003. The average daily output of granite industry was 619 tonnes in
2004. Again it declined in 2005 and 2006 to 353 and 527 tonnes respectively. Finally,
the average daily output increased to 1417 tonnes by 2011. In this regard the
performance of granite industry in producing average daily output is not in a
subsistence level.
Table-2.6 State-wise Average Daily Employment of Granite Industry in India by 2010-11
(In. Persons)
Sl. No State Average Daily Employment O/C A/C (Surface) Total
1 A.P 1828 994 2822 2 Goa 90 9 99 3 Karnataka 1087 192 1279 4 Kerala 136 76 212 5 Orissa 21 5 26 6 M.P 31 N.A 31 7 T.N 2263 442 2705 8 Others 1104 373 1477
Total 6560 2091 8651 Source: Statistics of Mines in India-2011
47
The selected state-wise average daily employment with the composition of
opencast and above ground activities of granite industry in India during 2010-11may
be seen in the Table-2.6. It can be observe the average daily employment in opencast
activities has varied widely in various selected states of granite industry in India. The
average daily employment in opencast activities in Andhra Pradesh is 1828, Goa 90,
Karnataka 1087, Kerala 136, Orissa 21, Madhya Pradesh 31, Tamil Nadu 2263, and
other states 1104. The total average daily employment in opencast granite industry
was 6560 during 2010. However, employment in opencast mines of granite industry
in Tamil Nadu is comparatively higher than in the remaining states in India during
2010.
The data also indicates that the average daily employment of granite industry
on the above ground has varied widely in various selected states in India during 2010.
The data shows average daily employment on the above ground in Andhra Pradesh is
994, Goa 9, Karnataka 192, Kerala 76, Orissa 5, Tamil Nadu 442, and other states
373. The total average daily employment of granite industry above ground was 2091
during 2010.The average daily employment composition of opencast granite mines
and above ground granite industry in India was 8651 during 2010.
Table-2.7
Gender-Wise Average Daily Employment of Granite Industry in Selected States in India by 2010
Sl. No State Average Daily Employment
(In. Persons) Male Female Total
1 A.P 2778 44 2822
2 Goa 92 07 99
3 Karnataka 1243 36 1279
4 Kerala 149 63 212
5 Orissa 26 N.A 26
6 M.P 31 N.A 31
7 T.N 2673 32 2705
8 Others 1405 72 1477
Total 8397 254 8651 Source: Statistics of Mines in India-2011
48
The selected state-wise average daily employment composition of males and
females in granite industry in India during 2010 are presented in the Table-2.7. It can
be observed that the average daily employment of males has varied widely in various
selected states of granite industry in India. The average daily employment of males in
Andhra Pradesh is 2778, Goa 92, Karnataka 1243, Kerala 149, Orissa 26, Madhya
Pradesh 31, Tamil Nadu 2673, and other states 1405. The total average daily
employment of males of granite industry was 8397 during 2010. However
employment of males in of granite industry in Andhra Pradesh is comparatively higher
than in the remaining states in India during 2010.
The data also indicate that the average daily employment of females of granite
industry has varied widely in various selected states in India during 2010. The data
shows average daily employment of females in Andhra Pradesh is 44, Goa 07,
Karnataka 36, Kerala 63, Tamil Nadu 32, and other states 72. The total average daily
employment of female in the granite industry was 254 during 2010.
The average daily employment composition of males and females in the granite
industry in India was 8651 during 2010. However the performance of granite industry
in providing average daily employment is not in a desirable position
2.9 PERFORMANCE OF GRANITE INDUSTRY IN INDIA The Office of the Ministry of Mines, Government of India, estimates various
performance parameters relating to the growth of granite industry in India. The data
on various economic parameters to evaluate the performance of granite industry are
presented as following.
From the Table-2.8, it can be observed that the number of granite units have
increased from 29.01 thousand units in 1998-99 to 32.73 thousand units by
2003-2004. The increase in granite units, however, has been considerable between
2004-05 and 2010-2011 from 35.05 thousand units to 41.91 thousand units. During
this period, the growth of granite units has been gradual and steady which is evident
from the table. There has been a steady growth in investment, and employment during
1998-99 to 2010-2011. The investment increased from Rs. 4020 Crore in 1998-99 to
Rs.12564 Crore in 2010-2011. There has been a steady increase in employment in
49
granite units in India. The employment in granite units increased from 54385 persons
in 1998-99 to 76929 persons in 2004-05. Further, the employment in granite units has
increased to 128860 persons by 2010-2011.
Table-2.8
Performance of Granite Industry in India from1998-99 to 2010-2011
Source: 1. Ministry of Mines, Government of India 2. www.indiastat.com Note:* significant at 1 per cent level During the period from 1998-99 to 2010-11 the Mean value for total number
of granite units is 35.01, mean of fixed investment is Rs.7796.15 and the mean
number of employees of granite industry in India is 81055. During the same period
the growth performance of granite industry in respect of total number of units, fixed
investment and employment linearly increased at the rate of 0.7970, 1.9633 and
1.5629 per cent respectively and are significant at 1 per cent level.
Sl. No Year No. of Total
Granite Units (In. 000)
Fixed Investment (Rs. Crore)
Employment (In. persons)
1 1998-99 29.01 4020 54385 2 1999-00 29.44 4585 58297 3 2000-01 30.12 5222 60111 4 2001-02 31.00 5734 65992 5 2002-03 31.67 6500 69212 6 2003-04 32.73 7150 72753 7 2004-05 35.05 7933 76929 8 2005-06 36.74 8752 80421 9 2006-07 37.19 8900 86665 10 2007-08 39.17 9432 93079 11 2008-09 39.82 9876 98367 12 2009-10 41.26 10682 108651 13 2010-11 41.91 12564 128860
Mean 35.01 7796.15 81055.54 LGR 0.7970 1.9633 1.5629
t- Value 0.0057* 0.000059* 0.0000046*
50
Table-2.9 State-wise Distribution of Percentage of Number of Registered Granite
Industrial Units by Type of Organisation in India in 2010-11
Sl. No States Proprietary Partnership Pvt. Ltd Total
1 Andhra Pradesh 86.58 9.41 4.01 100.00
2 Assam 92.69 3.27 4.04 100.00
3 Bihar 97.75 1.37 0.88 100.00
4 Chhattisgarh 88.31 2.86 8.83 100.00
5 Gujarat 82.84 13.65 3.51 100.00
6 Haryana 84.98 9.04 5.98 100.00
7 Jharkhand 92.66 3.25 4.09 100.00
8 Karnataka 92.43 4.92 2.65 100.00
9 Kerala 92.87 4.73 2.40 100.00
10 Madhya Pradesh 96.64 1.85 1.51 100.00
11 Maharashtra 71.70 17.61 10.69 100.00
12 Meghalaya 98.92 0.21 0.87 100.00
13 Orissa 90.26 4.79 4.95 100.00
14 Rajasthan 86.71 7.71 5.58 100.00
15 Tamil Nadu 91.99 5.85 2.16 100.00
16 Uttar Pradesh 90.85 4.17 4.98 100.00
17 West Bengal 84.55 10.20 5.25 100.00
All India 83.82 13.65 2.53 100.00 Source: 1. Ministry of Small Scale Industries, Govt. of India 2. Dept. of Mines and Geology (Various State Governments) The state-wise distribution of percentage of number of registered granite units
by the type of organisation is furnished in Table-2.9. Of all the types of organisations;
proprietary category is conspicuous with 83.82 per cent of granite units in India. This
is, however, distantly followed by partnership and Private Limited categories of units
at 13.65 and 2.53 per cent respectively. Among the States, the proprietary category
recorded the highest percentage of 98.92 in Meghalaya and the lowest of 71.70 per
cent in Maharashtra. This range is, however, highly pronounced in the case of
51
partnership from 0.21 per cent in Meghalaya to 17.61 of Maharashtra while the
percentage varied from 0.87 per cent in Meghalaya to 10.69 per cent of Maharashtra
in the case of Private Limited organisation. Majority of states (10) witnessed more
than 90 per cent of investment under proprietary category, followed by 6 states in the
range of 80 to 90 per cent and only 1 state in the range of 70 to 80 per cent.
Table-2.10
Sickness in Granite Industry in India During 2001 to 2011
Sl.No Year
No. of Total Granite Units
(In. 000)
Sick Units
(In. 000)Percentage
Total Investment
(Rs. In. Crore)
Sick Unit Investment
(Rs. In Crore) Percentage
1 2001 30.12 1.10 3.65 5222 237 4.54
2 2002 31.00 1.07 3.45 5734 269 4.69
3 2003 31.67 1.12 3.54 6500 254 3.91
4 2004 32.73 1.34 4.09 7150 348 4.87
5 2005 35.05 2.00 5.71 7933 401 5.05
6 2006 36.74 2.31 6.29 8752 425 4.86
7 2007 37.19 2.20 5.92 8900 409 4.60
8 2008 39.17 2.45 6.25 9432 495 5.25
9 2009 39.82 2.12 5.32 9876 532 5.39
10 2010 41.26 1.74 4.22 10682 511 4.78
11 2011 41.91 1.09 2.60 12564 623 4.96
Source: 1.Ministry of Small Scale Industries, Govt. of India 2. Ministry of Mines, Govt. of India
A review of the trends in sickness among the granite units in the Table-2.10
reveals an interesting trend. During 2001, there were 30.12 thousand granite industrial
units and their number has steadily increased year by year up to 41.91 thousand units
in 2011. The percentage of sick units among the granite units was 3.65 per cent in
2001 and it gradually increased to 6.29 per cent in 2006 and later gradually declined
to a level of 2.60 per cent in 2011. The total investment in granite units was reported
at Rs.5222 Crore in 2001 of which the investment incurred on sick units has been
worked out to 4.54 per cent. The percentage of investment of sick units was revolving
52
around 3.91 per cent in 2003. The maximum percentage of investment 5.39 per cent
was observed in sick units during the year 2009. In absolute terms, the investment in
sick units was also increasing year after year as there was increase in investment in
granite units.
2.10 DESCRIPTION OF THE PRODUCTION OF GRANITE INDUSTRY IN
INDIA
This section provides a general description of the production of granite stone
in India. Granite stone is extracted through open excavation or so-called ‘open pit’
quarrying (K.Vikram, no date). Production -trends in granite industry in India are
presented in Table-2.11.
Table-2.11 Production of Granite in India
Sl. No Year Production of Granite
In.000.Tonnes Rs. In. 000
1 1998-1999 1419.01 2530251
2 1999-2000 2541.04 3125144
3 2000-2001 3667 3452599
4 2001-2002 6205 4314773
5 2002-2003 6710 6569086
6 2003-2004 7059 8030919
7 2004-2005 7759 6752321
8 2005-2006 5246.7 14618600
9 2006-2007 4679.5 15506785
10 2007-2008 4850.3 17182770
11 2008-2009 5362.1 18114351
12 2009-2010 4909.1 18505306
13 2010-2011 6122.55 19857661 Source: CAPEXIL
53
The Table-2.11shows the production of granite and its value in India from
1998-99 to 2010-2011. The production of granite has increased from 1419.01 thousand
tonnes in 1998-99 to 7759 thousand tonnes in 2004-05 and its value is Rs.2530251 and
Rs.6752321 thousands respectively during the same period. But the production of
granite has declined to 5246.7 thousand tonnes in 2005-06.Its value is Rs.14618600
thousands. Finally, the total production has gradually increased to 6122.55 thousand
tonnes and the total value of granite increased to Rs.19857661 thousands during 2010-
2011. The data in the above table can evaluate that the production performance of
granite industry in tonnage. It shows an increasing trend up to 2004-05, and then it
starts declining. But the performance of granite industry in value aspect is at an
increasing trend up to 2010-2011.
Table-2.12 Growth Rates of Granite Production in India from 1998-99 to 2010-11
Sl. No
Production of Granite
Mean/ Average ACGR R2 t-Value F-Value
1 In. Tonnes 5117.715 6.499 0.2960 2.15** 4.62
Source: Computed from the table-2.11 Note: ** Significant at 5 per cent level
From the Table-2.12, it is evident that the growth of Granite production in
India was 6.499 per cent per annum during the period 1998-99 to 2010-11. The
calculated t-value is significant at 5 per cent level indicating that the growth of
production of Granite in India is increasing significantly during the study period.
54
Table-2.13 State-wise Production of Granite in India (In. Tonnes)
Sl. No State/Year 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
1 A.P
544260 (38.33)
553377 (21.78)
646176 (17.62)
693318 (11.17)
1072944 (15.99)
756777 (10.72)
1073124 (13.83)
2417991 (46.09)
2390640 (51.09)
2362671 (48.71)
2283234 (42.58)
1946367 (39.65)
2 Bihar
2430 (0.17)
1217 (0.05)
875 (0.02)
1230 (0.02)
1720 (0.03)
2500 (0.04)
625 (0.01)
1350 (0.03)
1010 (0.02)
1215 (0.03)
1179 (0.02)
1301 (0.03)
3 Gujarat
3261 (0.23)
40496 (1.59)
25860 (0.71)
175080 (2.82)
69950 (1.04)
66100 (0.94)
192241 (2.48)
286839 (5.47)
141507 (3.02)
55139 (1.14)
55139 (1.03)
55139 (1.12)
4 Karnataka
381159 (26.84)
292515 (11.51)
428510 (11.68)
521530 (8.40)
459210 (6.84)
590250 (8.36)
312525 (4.03)
31734 (0.60)
33632 (0.72)
373191 (7.70)
428661 (8.00)
685599 (14.00)
5 Kerala
10350 (0.73)
9150 (0.36)
9940 (0.27)
10720 (0.17)
12000 (0.18)
9495 (0.13)
10580 (0.14)
7395 (0.14)
6957 (0.15)
5487 (0.11)
2211 (0.04)
1109 (0.02)
6 Rajasthan
46323 (3.26)
49869 (1.96)
52776 (1.44)
83534 (1.35)
207548 (3.09)
199505 (2.83)
207548 (2.67)
264771 (5.05)
335092 (7.16)
36262 (0.75)
358213 (6.68)
760594 (15.49)
7 T.N
352854 (24.85)
436152 (17.16)
504192 (13.75)
401514 (6.47)
505023 (7.53)
625100 (8.86)
505023 (6.51)
557229 (10.62)
385410 (8.24)
650103 (13.40)
512175 (9.55)
524457 (10.68)
8 U.P
46671 (3.29)
53430 (2.10)
60780 (1.66)
71631 (1.15)
71628 (1.07)
85220 (1.21)
71628 (0.92)
65166 (1.24)
62400 (1.33)
74700 (1.54)
72000 (1.34)
72000 (1.47)
9 Others
32505 (2.29)
1105100 (43.49)
1938210 (52.85)
4246615 (68.44)
4310250 (64.23)
4724150 (66.92)
5385710 (69.41)
1614150 (30.76)
1322405 (28.26)
1291258 (26.62)
1649200 (30.76)
862450 (17.57)
All India 1419813 (100.00)
2541306 (100.00)
3667319 (100.00)
6205172 (100.00)
6710273 (100.00)
7059097 (100.00)
7759004 (100.00)
5246625 (100.00)
4679053 (100.00)
4850026 (100.00)
5362012 (100.00)
4909016 (100.00)
Source: Indiastat.com, Indian Minerals Year Book-2011
55
The state-wise production performance of granite industry is furnished in the
above Table - 2.13. It is clear from the table, the total production of granite in India
was 14,19,813 tonnes in 1998-99 and it increased to 77,59,004 tonnes up to
2004-05. Then the production of granite industry showed a declining trend up to
2009-10 with a total production of 49,09,016 tonnes. In the country, Andhra Pradesh
State occupies top position registering 39.65 per cent followed by Rajasthan,
Karnataka, Tamilnadu, Uttar Pradesh, Gujarat, Bihar, Kerala, and others recorded
with 15.49, 14.00, 10.68, 1.47, 1.12, 0.03, 0.02, and 17.57 per cent respectively during
2009-10. The data in the above table shows that every State as well as India is facing
fluctuations in production performance of granite industry.
Table-2.14
Growth Rates for Granite Production by Selected States in India from 1998-99 to 2009-10
(In. Tonnes) Sl. No
Name of the State Mean/Average CV ACGR R2 t-Value
1 A.P 1395073 57.8595 15.6728 0.8334 7.075* 2 Bihar 1387.67 40.9822 -2.7826 0.6604 -0.841 3 Gujarat 99662.58 81.4392 6.3435 0.0909 1.000 4 Karnataka 378209.67 51.7937 -4.6955 0.0267 -0.524 5 Kerala 7949.5 43.5161 15.7401 0.6058 -3.920* 6 Rajasthan 216836.25 94.9887 18.7373 0.4708 2.983** 7 T.N 496603 18.2842 2.6090 0.2537 1.844 8 U.P 67271.2 15.30 2.7098 0.3620 2.382** 9 Others 2371066.917 75.1607 18.6430 0.1165 1.149
All India 5034060 36.5208 7.0866 0.2847 1.995 Source: Computed from the table-2.14 Note: * Significant at 1 per cent level, ** Significant at 5 per cent level
From the above statistical results (in Table-2.14), it is concluded that the
highest growth of Granite production has been registered in Rajasthan with 18.74 per
cent per annum during the study period followed by Kerala (15.74), Andhra Pradesh
(15.67) and Gujarat (6.34). The Coefficient of Variations is also presented in the
above table and it is noted that, there is less variability in U.P with regard to Granite
Production. The positive growth rates of production are significant at 1 per cent level
for Andhra Pradesh and Kerala only, whereas for Rajasthan and U.P the growth rates
are significant at 5 per cent level and for the remaining states the growth rates of
production are not significant.
56
Table-2.15 State-Wise Production Value of Granite in India
(Rs. in.000) Sl.No State/Year 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
1 A.P 1493742 (59.03)
2012142 (64.38)
2636087 (76.34)
2858675 (66.25)
4653000 (70.83)
6572410 (81.84)
4390935 (65.03)
12477701(85.35)
13308421 (85.82)
14608299 (85.02)
15463740(85.34)
13994677(75.63)
2 Bihar 394 (0.02)
271 (0.01)
123 (0.003)
182 (0.004)
N.A (0)
N.A (0)
251 (0.004)
365 (0.002)
287 (0.002)
199 (0.001)
375 (0.002)
341 (0.001)
3 Chhattisgarh 130 (0.01)
147 (0.004)
155 (0.004)
413 (0.01)
85 (0.001)
85 (0.001)
85 (0.001)
110 (0.001)
167 (0.001)
398 (0.002)
N.A (0)
510 (0.003)
4 Gujarat 2804 (0.11)
4087 (0.13)
2252 (0.07)
10810 (0.25)
661 (0.01)
661 (0.01)
1675 (0.02)
9508 (0.07)
8648 (0.06)
11159 (0.06)
11159 (0.06)
11159 (0.06)
5 Karnataka 269151 (10.64)
437649 (14.00)
N.A (0)
352010 (8.16)
394516 (6.01)
203545 (2.53)
1020142 (15.11)
957620 (6.55)
1241050 (8.00)
1461888 (8.51)
1612651 (8.90)
2486396 (13.44)
6 Kerala 34210 (1.35)
41150 (1.32)
56490 (1.36)
N.A (0)
20150 (0.31)
N.A (0)
N.A (0)
49292 (0.34)
47998 (0.31)
38583 (0.22)
29480 (0.16)
47687 (0.26)
7 Rajasthan 27760 (1.09)
31310 (1.00)
79853 (2.31)
137666 (3.19)
369884 (5.63)
369884 (4.61)
369884 (5.48)
228414 (1.56)
234053 (1.51)
505297 (2.94)
493766 (2.73)
1339802 (7.24)
8 T.N 199787 (7.90)
226631 (7.25)
269199 (7.80)
222969 (5.17)
260494 (3.97)
260494 (3.24)
260494 (3.86)
320035 (2.19)
N.A (0)
401297 (2.34)
353180 (1.95)
362679 (1.96)
9 U.P 136989 (5.41)
311675 (9.97)
354550 (10.27)
417848 (9.68)
417830 (6.36)
417830 (5.20)
417830 (6.19)
380135 (2.60)
364000 (2.35)
155650 (0.91)
150000 (0.83)
150000 (0.81)
10 Others 365500 (14.44)
60250 (1.93)
54180 (1.57)
314200 (7.28)
452466 (6.89)
206010 (2.57)
291025 (4.31)
195420 (1.34)
302161 (1.95)
N.A (0)
N.A (0)
112055 (0.61)
All India
2530467 (100.00)
3125312 (100.00)
3452889 (100.00)
4314773 (100.00)
6569086 (100.00)
8030919 (100.00)
6752321 (100.00)
14618600(100.00)
15506785 (100.00)
17182770 (100.00)
18114351(100.00)
18505306 (100.00)
Source: Indian Minerals Year Book-2011, Indiastat.com, Dept. of Mines and Geology (Various State Governments)
57
The state-wise production performance of granite industry in value terms is
furnished in the Table-2.15.Thetotal production value of granite in India was
Rs.253.04 Crore in 1998-99 and it increased to Rs.1850.53crore up to 2009-10. But
the total production value of granite in India decreased to Rs.675.23 crore in
2004-05. Except in the year 2004-05 the performance of the total production value of
granite in India was showing an increasing trend. In this total production value of
granite industry in India, Andhra Pradesh State has the highest position recording
75.63 per cent followed by Karnataka, Rajasthan, Tamilnadu, Uttar Pradesh, Kerala,
Gujarat, Chhattisgarh, Bihar and others have recorded 13.44, 7.24, 1.96, 0.81, 0.26,
0.06, 0.003, 0.001 and 0.61 per cent respectively during 2009-10.
Table-2.16
Growth Rates for Value Granite Production by Selected States in India from 1998-99 to 2009-10
(Rs. In. 000)
Sl. No Name of the State Mean/Average ACGR
1 A.P 7872486 22.7962 2 Bihar 267.6667 3.1186 3 Chhattisgarh 227 9.6957 4 Gujarat 6215.25 15.1219 5 Karnataka 903520.6 19.4899 6 Kerala 37787.67 0.5909 7 Rajasthan 348964.4 28.5276 8 T.N 290802 5.6826 9 U.P 306194.8 -4.3077 10 Others 235959.8 2.2667
All India 10002686 19.9494 Source: Computed from the Table-2.15 Note: * Significant at 1 per cent level, ** Significant at 5 per cent level
The growth rate of value of production of granite industry by selected states in
India may be observed in the Table-2.16. The co-efficient of variation is high in
Rajasthan state with 101.4019 and very low in Tamilnadu with 22.2704. The value of
co-efficient of variation for Andhra Pradesh is 70.9318 and 64.0391for India. Annual
compound growth rate is very high in Rajasthan state registering with 28.5276 while
it is 22.7962 in Andhra Pradesh and 19.9494 in India. The annual compound growth
rate is negative in Uttar Pradesh state. The effect of R2 value is high in Andhra
Pradesh with 0.9183 and is very low in Kerala state with 0.0041.
58
The calculated ‘t’ value for production of granite in India (in Rupees form) is
13.440 which is significant at 1 per cent level. The calculated ‘t’ values for Andhra
Pradesh, Karnataka, Rajasthan, Tamil Nadu are 10.607, 5.605, 6.121, and 7.402 and is
significant at 1 per cent level.
2.11 EXPORTS OF GRANITE INDUSTRY
Together with China and Italy, India was one of the most important producers
and leading exporters (in terms of tonnage) of natural stone worldwide over the past
decade. India traditionally exports large quantities of raw blocks, rough slabs and
standard tiles. Of late; gravestones have become an (increasingly) important export
product. India is a global leader in terms of granite exports: Indian stone exports
comprise mainly granite cut blocks, granite slabs and tiles (http://www.cdos.com,
2005).
On an average, over ten percent of the natural stone traded the world market
comes from India. The annual export growth rate has been around 10 to 15 percent
over the last decade, although in the past two years exports from India stagnated
somewhat due to the rise of China.
India’s market presence notwithstanding, quarrying operations in the country
may, on average, be characterized as relatively small in scale, with a low level of
mechanization and labour intensive. Quarrying operations are regularly unorganized
and of informal nature. However, the trend over the past decade has been one of
mechanization and modernization (Lahiri-Dutt, 2003).
As granite is an important export good and, therefore, a considerable ‘foreign
exchange earner’, some parties believe that it should be reclassified as a ‘major
mineral’. Policy on major minerals is determined by the national government,
whereas minor minerals are left to local state authorities. Re-classification would thus
facilitate the development of a uniform central policy. A first step in this direction has
been the formulation of the Granite Conservation and Development Rules in 1999,
which seek to establish a uniform policy for granite development, exploitation and
conservation (TERI report, 2001).
59
Table-2.17
Exports of Granite from India
Sl. No Year Exports (In. Tonnes)
Value of Exports (Rs. in. Crore)
1 1998-1999 778643 1013
2 1999-2000 1489167 1564
3 2000-2001 1582170 1860
4 2001-2002 1673862 1874
5 2002-2003 2183570 2375
6 2003-2004 2098174 2506
7 2004-2005 2608556 2726
8 2005-2006 2841066 3491
9 2006-2007 3291823 4725
10 2007-2008 3701361 4287
11 2008-2009 3958853 4815
12 2009-2010 3827668 4994
13 2010-2011 4369384 5384
Mean 2646484.39 3201.08
LGR 2.5412 2.7637
t- Value 0.00000021* 0.00018* Source: DGCI&S, Annual Report, Statistics of Granite Industry, Kolkata Note:* Significant at 1 per cent level
60
7786
4310
1314
8916
715
64
1582
170
1860
1673
862
1874
2183
570
2375
2098
174
2506
2608
556
2726
2841
066
3491
3291
823
4725
3701
361
4287
3958
853
4815
3827
668
4994
4369
384
5384
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Exp
ort
1998-1999
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
Years
Fig.2.2: Exports of Granite from India
Exports (In.Tonnes)
Value ofExports (Rs. in.Crore)
61
The increase in the exports of granite was significant during the last decade in
India; we can see more in the Table-2.17 and Fig-2.2. From the above table, the
exports of granite in India from 1998-99 to 2010-11 and their value can be observed.
The total exports of granite products have increased from India to world countries
were 7, 78,643 tonnes and its value was Rs.1,013 Crore in 1998-99 to 21, 83,570
tonnes and its value was Rs.2,375 Crore by 2002-03. And then the total exports of
granite was 26, 08,556 tonnes and their value was Rs.2,726 Crore in 2004-05. This
increased to 43, 69,384 tonnes and its value was Rs.5,384 Crore by 2010-11. Except
in the year 2003-04, the export performance of granite industry in India was quite
remarkable. It is the result of competition and enables granite units to record large
increases in exports of granite in India.
During the period 1998-99 to 2010-11 the Mean value for total exports and its
value of granite industry in India is Rs.2646484.39 and Rs.3201.08 respectively. From
the statistical results of the above table, it is concluded that the exports of granite are
increasing at the rate of 2.54 per cent per annum during the same period and it is
significant at 1 per cent level.
62
Table-2.18 Segment-Wise Exports of Granite in India
Sector/ Year
2005-06 2006-07 2007-08 2008-09 2009-10
In. Tonnes Rs.in.000 In. Tonnes Rs.in.000 In. Tonnes Rs.in.000 In. Tonnes Rs.in.000 In. Tonnes Rs.in.000
1
Granite crude/Roughly
trimmed
1681197
(59.17)
10397819
(29.79)
2147415
(65.24)
17033727
(36.05)
2563921
(69.27)
14794490
(34.51)
2641496
(66.72)
16334115
(33.92)
2598235
(67.88)
16165697 (32.37)
2 Granite cut blocks/Slabs 465796
(16.40)
2957735
(8.47)
294407
(8.94)
2317061
(4.90)
336619
(9.09)
2230540
(5.20)
379326
(9.58)
1995799
(4.15)
295794
(7.73)
2341327 (4.69)
3 Granite Polished 496426
(17.47)
14975620
(42.90)
552414
(16.78)
17919800
(37.93)
413816
(11.18)
13325620
(31.08)
308493
(7.79)
9606869
(19.95)
207505
(5.42)
6719493 (13.46)
4 Granite Others 197647
(6.96)
6574756
(18.84)
297587
(9.04)
9977818
(21.12)
387005
(10.46)
12524202
(29.21)
629538
(15.90)
20212224
(41.98)
726134
(18.97)
24710807 (49.48)
Total 2841066
(100.00)
34905930
(100.00)
3291823
(100.00)
47248406
(100.00)
3701361
(100.00)
42874852
(100.00)
3958853
(100.00)
48149007
(100.00)
3827668
(100.00)
49937324 (100.00)
Source: DGCI&S, Annual Report, Statistics of Granite Industry, Kolkata
63
Segment-wise India’s exports of granite and granite based products from
2005-06 to 2009-10, as may be seen from Table-2.18, registered a significant growth.
The total segment-wise exports of granite in India amounted to 28,41,066 tonnes and
their value was Rs.3,49,05,930 thousand Crore in 2005-06. This has increased to
38,27,668 tonnes, and the total value of segment-wise exports of India was Rs.
4,99,37,324 Crore by 2009-10. Further,analysis reveals that ‘granite others’ emerged
as the major segment thereby placing granite crude/roughly trimmed in the second
rank. This segment happened to be the largest segment of exports in 2009-10. The
segment during the period registered a record exports which peaked at Rs.1,61,65,697
thousand Crore in 2009-10 as against Rs.1,03,97,819 Crore in 2005-06. The exports
of ‘granite cut blacks/slabs’ have touched 4, 65,796 tonnes and their value was
Rs.29,57,735 thousand Crore in 2005-06. This has decreased to 2,95,794 tonnes and
its value was Rs.23,41,327 thousand Crore by 2009-10. Finally, the exports of
‘granite polished’ have also shown decreasing trend and this may be seen in the above
table.
64
2.12 COUNTRY-WISE EXPORTS OF GRANITE FROM INDIA Granite exports from India to some major country-wise are presented in the
Table-2.19
Table-2.19 Total Exports of Granite by Selected Countries from India
Sl. No Name of the Country
2006-07 2010-11 In. Tonnes In. 000 Rs In. Tonnes In. 000 Rs
1 USA 378731 (11.51)
11881091 (25.15)
272739 (6.39)
6881536 (13.33)
2 China 1078133 (32.75)
9340089 (19.77)
2568888 (60.23)
18445194 (35.73)
3 Italy 477432 (14.50)
4516046 (9.56)
212547 (4.98)
2803526 (5.43)
4 UK 82821 (2.52)
1993593 (4.22)
49448 (1.16)
1808760 (3.50)
5 Germany 65728 (2.00)
1897596 (4.02)
68455 (1.60)
2358547 (4.57)
6 UAE 82668 (2.51)
1717080 (3.63)
86891 (2.04)
1638851 (3.18)
7 Belgium 123251 (3.74)
1570497 (3.32)
80538 (1.89)
1736972 (3.37)
8 Hong Kong 177731 (5.40)
1561622 (3.31)
194547 (4.56)
1466031 (2.84)
9 Netherlands 316964 (9.63)
2883465 (6.10)
34854 (0.82)
1266347 (2.45)
10 Others 508364 (15.44)
9887327 (20.93)
696546 (16.33)
13211246 (25.60)
Total 3291823 (100.00)
47248406 (100.00)
4265453 (100.00)
51617010 (100.00)
Source: DGCI&S, Annual Report, Statistics of Granite Industry, Kolkata
India’s granite exports country-wise are shown that in the above table. The
Table-2.19 and Fig-2.3 revels that China continues to be the largest market for Indian
granite and granite based products. There was a phenomenal increase in exports to
this market in the year 2010-11 over the previous year 2006-07. The total granite
exports reached a level of Rs. 5, 16, 17,010 thousand Crore as against Rs. 4, 72,
48,406 thousand Crore in the previous year 2006-07. The other markets, USA and
Italy, have been showing a steep growth during the period registering 13.33 per cent
and 5.43 per cent (in value terms) by the year 2010-11.
65
02000000400000060000008000000
100000001200000014000000160000001800000020000000
Exp
orts
USA China Italy UK Germany UAE Belgium Hong Kong Netherlands Others
Name of the Country
Fig.2.3: Total Exports of Granite by Selected Countries from India
In. tonnesIn. 000 RsIn. tonnesIn. 000 Rs
66
2.13 IMPORTS OF GRANITE INDUSTRY BY INDIA
Table-2.20 Imports of Granite in India
Sl. No Year Imports
(In. Tonnes) Value of Imports
(Rs. in. Crore) 1 1998-1999 2577 3 2 1999-2000 957 2 3 2000-2001 1329 2 4 2001-2002 1588 3 5 2002-2003 5007 9 6 2003-2004 8536 18 7 2004-2005 13528 23 8 2005-2006 19281 33 9 2006-2007 41302 84 10 2007-2008 37621 60 11 2008-2009 50786 100 12 2009-2010 51214 102 13 2010-2011 55554 116
Mean 22252.31 42.69 LGR 5.5935 5.7981
t-Value 0.000037* 0.018* Source: DGCI&S, Annual Report, Statistics of Granite Industry, Kolkata Note:* Significant at 1 per cent level
From the Table-2.20, the imports of granite by India from 1998-99 to 2010-11
and their value can be observed. The total imports of granite products has increased
by India from world countries were 2,577 tonnes and its value was Rs. 3 Crore in
1998-99 to 55,554 tonnes and its value was Rs. 116 Crore by 2010-11. But in the year
1999-2000 the total imports of granite by India declined to some extent i.e., 957
tonnes. We can also observe that the value of imports of granite is more or less equal
during 1998-99 to 2001-2002.
During the period from 1998-99 to 2010-11 the Mean value for total imports
and their value were 22252.31 tonnes, and 42.69 Crore respectively. The total imports
and their value increased at a rate of 5.5935 and 5.7981, respectively and are
significant at 1 per cent level.
67
Table-2.21 Segment-Wise Imports of Granite in India
Sl. No
Sector/Year 2005-06 2006-07 2007-08 2008-09 2009-10
In. Tonnes Rs.in.000 In. Tonnes Rs.in.000 In. Tonnes Rs.in.000 In. Tonnes Rs.in.000 In. Tonnes Rs.in.000
1 Granite crude/Roughly trimmed
11271 (58.46)
156059 (47.19)
18494 (44.78)
302412 (35.85)
20383 (54.18)
287386 (47.95)
15771 (31.05)
350185 (35.14)
33072 (64.58)
618697 (60.85)
2 Granite cut blocks/Slabs 1222 (6.34)
26335 (7.96)
2401 (5.81)
34299 (4.07)
3439 (9.14)
47961 (8.00)
21562 (42.46)
365965 (36.72)
3286 (6.42)
57671 (5.67)
3 Granite Polished 5140 (26.66)
93184 (28.18)
14564 (35.26)
389753 (46.20)
7229 (19.23)
148290 (24.74)
8306 (16.35)
136055 (13.65)
6267 (12.24)
159809 (15.72)
4 Granite Others 1648 (8.55)
55132 (16.67)
5842 (14.14)
117156 (13.89)
6570 (17.46)
115723 (19.31)
5147 (10.13)
144442 (14.49)
8589 (16.77)
180664 (17.77)
Total 19281 (100.00)
330710(100.00)
41301(100.00)
843620(100.00)
37621(100.00)
599360(100.00)
50786(100.00)
996647(100.00)
51214(100.00)
1016841(100.00)
Source: DGCI&S, Annual Report, Statistics of Granite Industry, Kolkata
68
Segment-wise India’s imports of granite and granite based products from
2005-06 to 2009-10, as may be seen from Table-2.21, registered as an increasing
trend. The total segment-wise imports of granite in India were 19,281 tonnes and their
value was Rs.3,30,710 thousand Crore in 2005-06 and has increased to 51,214 tonnes,
and the total value of segment-wise imports of India was Rs.10,16,841 Crore by 2009-
10. Further analysis reveals that ‘granite crude/roughly trimmed’ emerged as the
major segment there by placing ‘granite others’ in the second rank. This segment
happened to be the largest segment of imports in 2009-10. The segment-wise imports
registered a record imports which peaked at Rs.1,80,664 thousand Crore in 2009-10
as against Rs.55,132 Crore in 2005-06. The imports of ‘granite polished’ have
recorded imports of 5,140 tonnes and their value was Rs.93,184 thousand Crore in
2005-06 and it has increased to 6,267 tonnes and its value was Rs.1,59,809 thousand
Crore by 2009-10. Finally, the imports of ‘granite cut blacks/slabs’ also shown
increasing trend as may be seen in the above table.
69
Reference
1. Annual Report, Ministry of Mines, India, 2011.
2. Indian Bureau of Mines, Nagpur, India
3. Chemicals and Allied Products Exports Promotion Council (CAPEXIL)
4. All India Granites and Stone Association (AIGSA), Bangalore
5. Minor Mineral Development Rules Act (MMDR Act, 1957)
6. Minor Mineral Concession Rules (MMCR)
7. Granite Conservation and Development Rules (GCDR), 1999
8. National Mineral Policy, 1993
9. National Mineral Policy, 2008
10. National Rehabilitation and Resettlement Policy
11. Various Five Year Plan Reports
12. Central Statistical Organization, Government of India, New Delhi
13. DGMS Annual Reports, 2005-2011
14. Various Minerals Year Books, IBM, Nagpur
15. www.indiastat.com
16. Statistics of mines in India – 2011
17. Department of Mines and Geology (Various State Governments)
18. DGCI & S, Annual Report, Statistics of Granite Industry, Kolkata – 2010-11
