Crisil’s intelligence indicates that 12 key states, which contribute 65% to the cement demand of India, have increased budget allocations by 11%. | Photo credit:
The cement sector is expected to see a demand growth of 6.5-7.5 percent of this tax driven by 10 percent of Risere in the budget allocation for the Ministries of Central Infrastructure and the expectations that a monsoon above the monzón above the formal will boost the rural agricultural profitability.
In fiscal year 2015, cement requires growth, moderate to 4.5-5.5 percent due to a slow beginning of the year due to the general elections, a spatially well distributed monsoon that impacted the construction and a high base of the last three prosecutors.
The infrastructure, which represents 29-31 percent of the internal cement demand, is expected to remain a key demand engine in the current prosecutor.
Sehul Bhatt, director of Crisil Intelligence, said that the budget of 12 states, which represents approximately 65 percent of the demand for Indian cement, reveals a substantial increase of 11 percent in total assignments for the current fiscal year.
In addition, it is expected that government emphasis on establishing specialized railway corridors for energy, mineral and cement industries, along with initiatives to promote tourism, reinforces demand, Bhatt said.
The rhythm of execution is expected to be withdrawn under the Pradhan Mantri Awas Yojana – Gramin, with an increase in sanctions
and more subsidy units. Average rural wages, which are estimated to increase 25 percent in the fiscal year
2025 are expected to remain on the highest side this fiscal year as well.
The urban housing segment is expected, which faced the winds against the last fiscal year due to slow real estate, recover the impulse in the current prosecutor, due to a low base, trimming of interest rates and a better rhythm of execution under Pradhan – Awas Yoja Jojja.
The allocation for the scheme increases 45 percent substantial in the Budget of the Union 2025-26.
The industrial and commercial segment, which represents 13-15 percent of the demand for internal cement, is expected to see a constant growth of this prosecutor, driven by traction of commercial real estate and storage.
Sachidanand Chubey, associate director, Crisil Intelligence said that an increase in demand between the segments is anticipated, driven by the increase in Capex assignments for infrastructure and housing mentions. After a two -year pause, this UPICK is expected to support a price increase in fiscal year 2026.
The thought competition for market share remains fierce, the qualification agency awaits a modest price increase of 2-4 percent as companies focus on improving the realizations, he said.
Posted on April 22, 2025
