Cement - #SectorUpdates
India is the second largest producer of cement in the world. It accounts for more than 7% of the global installed capacity. Strong expansion of the industrial sector, which has fully recovered from the COVID-19 pandemic shock, is one of the main demand drivers for the cement industry. India has a total of 210 large cement plants out of which 77 are in the states of Andhra Pradesh, Rajasthan, and Tamil Nadu. Nearly 33% of India’s cement production capacity is based in South India, 22% in North India, 13% in Central and West India, and around 19% is based in East India. FDI inflows in the industry, related to the manufacturing of cement and gypsum products, reached US$ 5.48 billion between April 2000-March 2022. Higher government spending on infrastructure and housing will be a key growth driver for the industry. The drive to take India’s economy to $ 5 trillion by 2025, with initiatives such as ‘Housing for All’ and ‘Smart Cities Mission’ will be heavily reliant on the growth of the cement industry.