India is the world’s second-largest cement producer, with more than 7 per cent of global installed capacity. The installed cement capacity in India is 553 mtpa, with a production of 298 mtpa. Ready availability of raw materials for making cement, such as limestone and coal, is a key factor aiding the growth of the sector.

According to a Crisil report, the Indian cement industry is likely to add 80 million tonne capacity by FY2024, which is the highest year-wise addition in the past 10 years. This is driven by an increasing spend on housing and infrastructure activities. India’s cement production is expected to increase at a CAGR of 5.65 per cent between FY2016 and FY2022, driven by demands in roads, urban infrastructure and commercial real estate. India’s cement production was expected to range between 380-390 mt in FY23, a growth rate of 8-9 per cent year on year.