Growth of Cement Industry in India - Infographic

India is the second-largest producer of cement in the world, accounting for more than 7% of the global installed capacity.

Advantage India

Robust
Demand

* India's cement production reached 374.55 million tonnes in FY23, a growth rate of 6.83% year-on-year (yoy).

* India's cement industry, as per CRISIL Ratings, plans to increase its capacity by 150-160 MT between FY25 and FY28, building upon the 119 MT annual capacity addition over the last five years, to cater to growing infrastructure and housing demands.

Robust Demand Icon

Attractive
Opportunities

* Government schemes like the Pradhan Mantri Awas Yojana (PMAY) for affordable housing and PM Gati Shakti National Master Plan for infrastructure are driving cement demand. PM Gati Shakti's focus on transport networks and PMAY's expansion will further increase cement consumption in coming years.

Attractive Opportunities

Long-term
Potential

* Oligopoly market, where large players have partial pricing control.

* Low threat from substitutes.

* Indian cement companies are amongst the world’s greenest cement manufacturers.

* With high allocation under the Union Budget 2023-24 for infrastructure, affordable housing schemes and road projects to fuel the economy, the domestic cement industry is poised for a volume surge.

Long-Term Potential

Increasing
Investments

* FDI inflows in the industry, related to the manufacturing of cement and gypsum products, reached US$ 6.10 billion (Rs. 5.08 lakh crore) between April 2000-December 2023.

* National Infrastructure Pipeline (NIP) introduced projects worth Rs. 102 lakh crore (US$ 14.59 billion) for the next five years.

Increasing Investments
Last updated: May, 2024

Cement Clusters

  • Rajasthan
  • Tamil Nadu
  • Andhra Pradesh
  • Madhya Pradesh
  • Chhattisgarh
  • Odisha
Cement Clusters in India

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