According to CARE Ratings, six states will drive the cement capacity expansion in the next phase. Telangana, Andhra Pradesh, Odisha, Rajasthan, West Bengal and Uttar Pradesh are the key states expected to witness capacity addition of around 120 mtpa over the next decade. Increased government spending and incentives to housing, especially in the affordable segment (both rural and urban), will lead to steady growth rates for the sector from FY2020 onwards. Roads, urban infrastructure and commercial realty, too, would continue to be key demand drivers for cement. India has been ranked as the second largest cement producer.