There will be tremendous boom in cement demand, 7.5 percent growth was estimated

Cement Industry Growth: As the infrastructure is developing, the demand for cement is also increasing. According to a report by Crisil Intelligence, the demand for cement industry in the financial year 2025-26 is expected to increase by 6.5-7.5 %. The reason behind this is the possibility of increasing the budgetary allocation of ministries associated with infrastructure and better monsoon, which will increase agricultural produce and will also speed up demand for rural houses.

Demand for moderate cement last year

In FY 2025, cement demand was at a moderate level of 4.5-5.5 percent. Due to the general election this year, the start of the financial year was sluggish. Apart from this, due to more monsoon than normal, there was a hindrance in construction works. According to the report, the spending of the state government also decreased in the first half, which slowed down work on many projects. The slow real estate market was affected by urban housing.

Due to this, the demand for cement will increase

The report stated that due to the infrastructure contributing 29-30 percent in the demand for domestic cement, its demand is expected to rise in the current financial year and the contribution of roads will be the highest. After this, railway, irrigation and urban are the place of infrastructure. Consumption of rural housing cement will be more. Its estimated stake is 32-34 percent.

Along with this, the increase in budgetary allocation for government projects like Pradhan Mantri Gramin Sadak Yojana and MNREGA will also promote the consumption of cement. Pradhan Mantri Awas Yojana – Applications are being given maximum approval for rural as well. In such a situation, work is expected to be accelerated with many construction unit. According to Crisil, the average rural wage is estimated to increase by about 25 percent in FY 2025.

Urban housing segment expected to boom

In FY 2025, the Urban Housing Segment faced difficulties due to real estate lethargy, but now it is expected to return to track again in the current financial year. For this, it is responsible for low Aadhaar, interest rate cuts and improvement in execution under Pradhan Mantri Awas Yojana-urban. In the Union Budget 2025-26, the allocation for this scheme has been increased by 45 percent.

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