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China Rebate Ends: Indian Abrasives Shine
5 Oct
Summary
- China's 13% export rebate withdrawal impacts abrasives pricing.
- Indian firms shift to high-value ceramics, super abrasives.
- Companies target semiconductors, EVs, defence, and aerospace.
As of October 2026, India's abrasive industry is experiencing a significant shift, driven by China's withdrawal of its 13% export VAT rebate on abrasives, effective from April 2026. This policy change is poised to enhance the competitiveness of Indian manufacturers, including Carborundum Universal, Wendt India, and Grindwell Norton, by reducing the price differential with Chinese imports.
These Indian companies are strategically pivoting towards higher-value segments like technical ceramics and super abrasives. This move targets rapidly growing sectors such as semiconductors, electric vehicles (EVs), defence, and aerospace, where product performance and reliability are prioritized over lower costs.
Carborundum Universal is enhancing its capabilities in advanced ceramics for applications in semiconductors and aerospace, aiming for strong revenue growth in this segment. Wendt India is focusing on its high-precision super abrasives business and expanding its global reach with a new German subsidiary.
Grindwell Norton is also seeing substantial growth in its Ceramics & Plastics division, which serves specialized markets including EV components and semiconductor equipment, indicating a trend towards advanced materials across the sector.
