According to ICRA, India´s cement demand is likely to improve gradually in the medium term in line with recovery in infrastructure, investment cycle and overall economy. With demand growth showing a sluggish trend during the first half of FY16, the pace of recovery in the cement industry is expected to be moderate at 3.8 per cent to 4.0 per cent during 2015-16. All India cement production grew by 1.26 per cent in the first half of FY16 compared to 9.73 per cent in the corresponding period of FY15. Further, muted growth in the Minimum Support Price (MSP) for crops for FY2015-16 as well as drought conditions affected agricultural incomes and post-monsoon rural demand for cement for housing and other purposes.
