Holcim’s Indian interests, ACC and Ambuja Cements both have an optimistic outlook for domestic cement demand this year, the Wall Street Journal reports.

ACC said though economic growth during the current fiscal year hasn’t been robust, it has seen some positive signs in the last few months. “In the near term, we expect economic development will accelerate as India plans to invest about US$1trn (INR49.3trn today) in infrastructure in the 12th Five-Year Plan period,” the company said. “This makes us optimistic about healthy growth in demand for cement, which we are well placed to serve.”

Apart from government spending during the 12th Plan period starting in April, lower inflation and interest rates ought to boost demand in 2012, Ambuja Cements said. It, however, warned that rising cost pressures may continue to affect margins adversely, adding that prices will remain volatile in the near term due to demand-supply imbalances.