New Delhi
India’s cement industry is projected to grow significantly, reaching 5.09 billion tonnes by 2028-29, with a compound annual growth rate (CAGR) of 4.9% from 2024 to 2029, according to a report on Monday.
The industry’s current market size stands at 3.82 billion tonnes (2022-23), with an installed capacity of 622 million tonnes per annum (MTPA) and production of 427 million tonnes in FY24. India contributes over 8% of global cement capacity, highlighting its key role in the sector.
Government investment in infrastructure projects and housing initiatives, such as the Pradhan Mantri Awas Yojana, is driving this growth. Infrastructure spending for FY25 is set at Rs 11.11 lakh crore, boosting cement demand. Real estate accounts for 55% of cement consumption, with public infrastructure making up the rest.
India’s per capita cement consumption is 260 kg, far below the global average of 540 kg, indicating significant growth potential. The sector employs over one million people directly and creates downstream jobs for 20,000 individuals per million tonnes of cement produced.
Private companies dominate the industry, holding over 98% of capacity, while public sector units contribute less than 2%. Imports constitute just 0.2% of production, as domestic supply meets demand efficiently.
India houses 341 cement plants, including 159 large integrated plants, 120 grinding units, and 62 mini plants. Cement production grew by 7.1% in September 2024, contributing to a 2% overall growth in core industries compared to the same month last year.
