INDIAN CEMENT INDUSTRY AT A GLANCE IN 2021 - 2022 India is the second largest cement producer in the world and boats of over 7% of the global installed capacity. With the construction sector in the boom, India being a developing country holds huge prospects for the prosperity of the cement industry. Cement industry thrives in India as its main raw materials of limestone and coal are found abundant here.
India’s overall cement production accounted for 294.4 million tonnes (MT) in FY21 and 329 million tonnes (MT) in FY20. Cement production reached 329 million tonnes (MT) in FY20 and is projected to reach 381 MT by FY22. And the consumption stood at 327 MT in FY20 and will reach 379 MT by FY22.
Industry ForecastThe cement demand is estimated to touch 419.92 MT by FY 2027. As per ICRA, in FY22, the cement production in India is expected to increase by about 12% YoY, due to rapid rural construction boom and growth of India’s infrastructure at large. The Indian cement industry is likely to add about 80 million tonnes (MT) capacity by FY24.
Higher allocation for infrastructure of about US$ 26.74 billion in roads and US$ 18.84 billion in railways in union budget of FY23, is likely to boost demand for cement. Due to the increasing demand in various sectors such as housing, commercial construction and industrial construction, cement industry is expected to reach 419.92 million tonnes per annum (MTPA) by the FY 2027.
Cement ExportsAs per Industry statistics , India’s export of portland cement, aluminous cement, slag cement, super-sulphate cement and similar hydraulic cements stood at US$ 118.15 million in FY21.
Industry InvestmentsFDI inflows in the industry, related to the manufacturing of cement and gypsum products, reached US$ 5.24 billion between April 2000-September 2021.
