The cement industry in India is poised for substantial growth, with expectations of a 9 to 10 percent increase in sales volume during the current fiscal year, largely driven by robust demand emanating from the infrastructure and urban housing sectors. According to a report by the rating agency Icra, the industry enjoyed a commendable volume growth of approximately 12 percent during the first half of this fiscal year, spanning April to September.

However, the report notes that there may be a degree of growth moderation in the second half of the fiscal year. This adjustment is attributed to the impact of below-normal monsoons, which have adversely affected crop yields and, consequently, rural incomes. Consequently, demand for rural housing in certain regions may experience a downturn.

Furthermore, the report highlights the potential for the forthcoming state elections to lead to a slowdown in the allocation of funds for ongoing infrastructure projects. This, in turn, could introduce some downside risks to cement volume off-take in the latter part of the fiscal year 2023-24. Nevertheless, the overall outlook for the Indian cement industry remains positive, driven by the sustained momentum in the infrastructure and urban housing sectors.