Report: India's Cement Industry to Add Capacity by 2030

Researched by Industrial Info Resources (Sugar Land, Texas)--India is currently witnessing an uptick in cement demand driven by sizable public infrastructure development, a thriving real estate sector and rapid urbanization.

According to India Brand Equity Foundation (IBEF), underpinned by favorable government policies, the cement industry is projected to reach a capacity of 850 million tonnes per annum (MTPA) by 2030. India's industry saw a year-over-year (YoY) output increase of 6.3% in fiscal-year 2024 (reaching 426.29 million tonnes), with the same figure expected in fiscal-year 2025 (reaching 453 million tonnes). The upward trajectory is likely to continue, growing by 7-8% in fiscal-year 2026.

With ample limestone and clay reserves (which form the backbone for cement production), India presently accounts for 8% of total installed cement capacity worldwide, according to the IBEF.

Government initiatives have proved to be major catalysts in boosting the cement demand in the country. Housing schemes such as the Pradhan Mantri Awas Yojana (PMAY) have resulted in reviving both rural and urban housing sectors. For instance, the rural housing sector currently makes up 32-34% of India's overall cement demand, according to the IBEF. In addition, increased government spending (marked by a 10% hike in central allocations and a 11% rise in state budgets) for roads, railways, highways and other public amenities has further fueled cement demand. Projects such as the Bullet Train corridor between Mumbai and Ahmedabad--which the IBEF notes has a consumption level of 20,000 cubic metres per day--and other transport projects are driving substantial demand.

Furthermore, policy reforms such as the Goods and Services Tax (GST) revamp introduced in September this year are also reshaping the sector. With prices likely to drop by 30-35 Indian rupees (US$ 0.34-0.40) per 50-kilogram cement bag, the policy is expected to reduce construction costs and stimulate cement demand. On the other hand, exports have remained strong this year with clinker, panel cement and asbestos products exports reaching US$685.1 million in fiscal-year 2025, while imports stood at US$181.2 million during the same period.

As Indian cement makers ramp up production by expanding existing facilities and investing in new ones to meet the rising demand, the cement industry is likely to see an inflow of investments.

According to Industrial Info's Global Market Intelligence (GMI) Project Database there are 631 active capital-spending projects in India, worth about US$30 billion, that are aimed at cement production. About 48% of the investment is geared towards unit additions at existing plants, while 36% of the spend is aimed at grassroot projects. India is the No. 1 market in the world for cement-manufacturing projects, accounting for about a quarter of the global market.

Subscribers to the GMI database can view a full list of detailed project reports.

Rajasthan leads the way with an investment value of US$5 billion across 115 projects. It is followed by Karnataka with a total spend pipeline of around US$4 billion and Madhya Pradesh with US$3 billion. An investment of more than US$2 billion is also being tracked out of Gujarat. Other states with notable capital spending include Andhra Pradesh, Chhattisgarh, Assam, Uttar Pradesh and Jharkhand.

Adani Group (Ahmedabad, Gujarat), Aditya Birla Group (Mumbai, Maharashtra) and JSW Group (Mumbai) are the top three players in the Indian cement market, having a combined project spending of US$15 billion and more than half of the total market share.

About 85% of the overall spending is in the planning phase, while the remainder is split equally between the engineering and construction stages. Most of these projects (373) show a kickoff slippage of about two years.

While the industry has grown, it faces challenges such as high input costs and competitive consolidation by giants such as Adani and Aditya Birla. The wave of acquisitions has intensified pressure on smaller firms, causing many of them to lose ground. At the same time, mounting environmental concerns are steering the industry toward green cement, a transition which entails heavy investments.

However, by embracing digitalized pricing models, investing in energy-efficient upgrades (waste-heat recovery systems, and carbon capture, utilization, and sequestration) and fostering industry collaboration through specialization and regional balancing, India's cement industry could sustain momentum.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).