The princely state of Morbi was famous for its:

Ceramic industry
Port
Hill station
Forests

The correct answer is: Ceramic industry.

Morbi is a city in Gujarat, India, known for its ceramic industry. The city is home to over 100 ceramic factories, which produce a variety of products, including tiles, sanitaryware, and tableware. The ceramic industry is a major source of employment in Morbi, and the city is known as the “Ceramic City of India”.

The other options are incorrect. Morbi is not a port, hill station, or forest.