The Indian cement industry is poised for significant growth, with market size projected to reach 5.09bnt by 2028-29, reflecting a compound annual growth rate (CAGR) of 4.9 per cent between 2024 and 2029, according to the latest Cement Industry Outlook report by Infomerics Ratings.
In FY22-23, the industry reported a market size of 3.82bnt, supported by an installed capacity of approximately 622Mta and production levels of 427Mt. India currently accounts for over eight per cent of the world’s installed cement capacity, highlighting its prominence in the global market.
The report highlights India’s growth potential, noting that per capita cement consumption stands at 260kg, significantly lower than the global average of 540kg. Government initiatives, including the allocation of INR11.11trn to infrastructure in FY24-25 and housing schemes such as the Pradhan Mantri Awas Yojana, are expected to bolster demand.
Real estate remains the dominant consumer, accounting for 55 per cent of cement consumption, while public infrastructure projects contribute the remaining 45 per cent.
The sector is a major driver of economic growth, providing direct employment to over 1m people and supporting approximately 20,000 downstream jobs for every million tonnes of cement produced. Notably, 98 per cent of the production capacity is privately owned, with public sector entities contributing less than two per cent.
India’s cement industry boasts 341 manufacturing units, comprising 159 integrated plants, 120 grinding units, and 62 mini plants. Despite strong domestic demand, exports have faced headwinds due to declining global demand and increased competition, with imports representing a mere 0.2 per cent of total production in FY22-23.
Cement production surged by 7.1 per cent in September 2024 compared to the previous year, according to the Ministry of Commerce and Industry. The cumulative production index rose by 1.6 per cent during April-September 2024, driven by growth in cement, steel and other core industries.
As the industry prepares to meet rising domestic demand, supported by robust government investments and an expanding real estate sector, India’s cement market is expected to remain a vital contributor to the nation’s infrastructure and economic development.
