New Delhi, Nov 25, 2024, IANS

New Delhi, Nov 25 (IANS) Driven by the growing government spending on infrastructure projects, the Indian cement industry is projected to grow to 5.09 billion tonnes by 2028-29, reflecting a compound annual growth rate (CAGR) of 4.9 per cent from 2024 to 2029, according to a report on Monday. The Indian cement industry's market size was 3.82 billion tonnes in 2022-23. The total installed capacity is approximately 622 million tonnes per annum (MTPA) as of FY24, with production reaching 427 million tonnes during the same year, said the ‘Cement Industry Outlook’ report by Infomerics Ratings. India currently accounts for over 8 per cent of global installed cement capacity. “While the global cement market is projected to grow at a CAGR of 4.3 per cent from 2024 to 2032, India's per capita cement consumption (260 kg) remains significantly lower than the global average (540 kg), indicating growth potential,” said the report. Government spending on infrastructure (Rs 11.11 lakh crore in FY25) and housing schemes like Pradhan Mantri Awas Yojana are expected to drive cement demand. Real estate accounts for 55 per cent of consumption, while public infrastructure projects make up the rest. India’s cement sector plays a vital role in its economic growth and provides direct employment to more than one million people and many more indirect jobs across the country. It employs about 20,000 people downstream for every million tonnes of cement produced. Over 98 per cent of the cement production capacity is owned by private entities, with public sector units holding less than 2 per cent of the market. “The industry meets domestic demand effectively, with imports constituting only 0.2 per cent of total production in FY23. Exports of clinker and cement have seen a decline due to reduced global demand and increased competition,” the report mentioned. The Indian cement industry has a total 341 cement manufacturing units in India, comprising 159 integrated large cement plants, 120 grinding units and 62 mini cement plants. The country’s core industries saw a growth of 2 per cent in September compared to the same month last year, riding on the growth in the production of cement, refinery products, coal, fertilisers and steel. The cement production increased by 7.1 per cent in September. Its cumulative index increased by 1.6 per cent during April to September 2024-25 over the corresponding period of the previous year, as per the Ministry of Commerce and Industry data.