Increased spending on housing projects will drive demand: Cement makers

Increased spending on large-scale housing and infrastructure projects announced in the Budget by the finance minister Nirmala Sitharaman will drive demand for construction materials, and allow capacity expansion, said cement makers.

The Budget presents a vision for India's economic growth emphasising rural and urban development, increased infrastructure investment, employment-led growth and strategic investments, said the Cement Manufacturers' Association (CMA) welcoming the Union Budget.

"The focus on increased investments on infrastructure across states amplifies opportunities and avenues for the growth of the cement sector. We appreciate the sustained core focus on infrastructure and reiterate our commitment to being partners in the Nation's progress," said CMA President Neeraj Akhoury.

Moreover, the government's push on large-scale housing and infrastructure projects will drive demand for construction materials and help in capacity expansion, he said.

"We are certain that despite challenges, these measures will support the Cement Industry in achieving a consistent CAGR growth rate of more than 6 per cent of installed cement capacity in the present financial year," said Akhoury who is also Managing director of Shree Cement. 

CMA Vice President Parth Jindal said allocations including Rs 20,000 crore to foster innovation and Rs 1.5 lakh crore in 50-year interest-free loans to states for capital expenditure on infrastructure development, are expected to significantly bolster growth in the core sectors, including cement.

"The Budget is a forward-looking roadmap that will play a pivotal role in shaping the future of India's cement industry. It prioritizes growth in key sectors such as infrastructure, manufacturing, and technology. The increased investment in technology will accelerate advancements in green cement solutions, driving both sustainability and innovation within the industry," said Jindal, who is also Managing Director of JSW Cement.

JK Lakshmi Cement President & Director Arun Shukla said "The completion of 50,000 dwelling units in stressed housing projects and the Rs 1.5 lakh crore allocation for infrastructure will bring much-needed relief to middle-class families, helping them move closer to homeownership while fostering rapid urbanization," he said.

Shukla further said he is "optimistic" about the Rs 10 lakh crore asset monetisation plan, which will infuse capital into new projects, sparking innovation across key sectors.

"Additionally, the focus on expanding infrastructure through PPP models and streamlining trade and warehousing facilities will create a conducive environment for cement demand, driving sustainable growth in the industry," he added.

Presenting Union Budget 2025-26, Sitharaman further said building on the success of the first asset monetization plan announced in 2021, the second plan for 2025-30 will be launched to plough back capital of Rs 10 lakh crore in new projects.