Report Description

Forecast Period


Market Size (2023)

USD 26023.83 Million

CAGR (2024-2029)


Fastest Growing Segment


Largest Market

West India


Market Overview

India Cement Market has valued at USD 26023.83 Million in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 8.04% through 2029. As the country experiences rapid economic growth and urban migration, the demand for robust infrastructure and modern urban living spaces has increased. Urbanization is a defining phenomenon, with millions of individuals relocating from rural areas to cities in search of better employment opportunities, education, and improved lifestyles. This mass movement has led to an increased need for housing, transportation networks, healthcare facilities, and educational institutions. Also, the government's various mission reflects this shift, aiming to transform numerous cities into technologically advanced, sustainable, and livable urban centers. This initiative encompasses a wide spectrum of projects, from building efficient public transportation systems and waste management solutions to creating green spaces and digital infrastructure. All these endeavors are underpinned by the pivotal role of cement as a primary construction material. The cement market was negatively impacted due to the COVID-19 pandemic, which resulted in decreasing demand across the construction industry and the closing of various manufacturing facilities. However, the market is recovering gradually and is likely to reach pre-COVID levels soon.

Over the short term, the growing residential constructions across the Asia Pacific region and the growing infrastructural activities in the Middle East and Africa region are some of the driving factors which are fueling the market demand. Moreover, the abundance availability of raw materials, such as fly ash, is also expected to drive the market forward.

However, government regulations on carbon emissions from cement manufacturing plants are hindering the market's growth.

Nevertheless, the shifting preference towards green construction and encouraging performance of HBC (High Belite Cement) in China are likely to provide opportunities to the market studied. Source:

Key Market Drivers

Rising infrastructure post-pandemic

The India Cement business, which accounts for about 7% of the installed capacity, is the world's second-largest cement industry, second only to China. It is also the fourth-largest revenue contributor to the exchequer and the second-largest revenue contributor to the Indian Railways, contributing nearly USD 7.14 billion (INR 50,000 crore) per annum to the government via taxes and levies, and about USD1.29 billion (INR 9,000 crore) per annum to the Indian Railways through freight.

Indian's infrastructure and construction sectors have a lot of room for growth, and the cement industry is likely to profit greatly from it. Some recent initiatives, such as the development of 98 smart cities, are expected to provide the sector with a significant boost.

Several foreign players, including Lafarge-Holcim, Heidelberg Cement, and Vicat, have recently invested in the country thanks to favorable government policies. The ready availability of raw resources for creating cement, such as limestone and coal, is a crucial aspect that promotes the growth of the India Cement industry.

Supportive Government policies:

The government has been allowing private sector investment programs to assist them in driving the India Cement business. The following are some of the government's recent initiatives:

• In July 2021, For the cement sector, the government established a council of 25 members (including UltraTech Cement MD Mr. K C Jhanwar and Dalmia Bharat Group CMD Mr. Puneet Dalmia) to decrease waste, achieve maximum production, improve quality, lower costs, and encourage product standardization.

• The government allocated an allocation of Rs. 1,18,101 crore (USD 16.22 billion) for the Ministry of Road Transport and Highways in the Union Budget 2021-22, which is expected to drive cement consumption.

Rising investments in the sector:

Cement and gypsum products drew US $5.87 billion in Foreign Direct Investment (FDI) between April 2000 and March 2021, according to data supplied by the Department for Promotion of Industry and Internal Trade (DPIIT).

Working remotely is likely to become more popular in 2021, and demand for cheap residences with ticket sizes of less than Rs. 40-50 lakh is expected to surge in Tier 2 and 3 cities, increasing cement demand.

The following are some of the recent key investments in the India Cement industry:

• In August 2021, Ambuja Cement has announced an Rs. 310 crore (USD 41.82 million) investment in its Ropar Unit, Punjab, to expand its manufacturing capacity to meet rising demand from the manufacturing sector for house construction and public infrastructure development. By June 2023, the expansion activities should be completed.

• In February 2021, Shree Cement partnered with IBM to run its database and critical business applications on IBM POWER9-based IBM Power Systems utilizing AIX and Red Hat. Shree Cement will be able to improve productivity and supply chain efficiencies across its manufacturing unit as a result of the deployment.

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Key Market Challenges

Environmental Concerns

The cement industry is known for its significant carbon emissions, leading to environmental concerns. The sector is under increasing pressure to adopt greener technologies and reduce its carbon footprint. Cement manufacturing requires substantial land and raw materials like limestone, clay, and gypsum. Obtaining these resources can be challenging, especially in densely populated areas.

Energy Intensive: Cement production is highly energy-intensive, which can lead to high operational costs. Rising energy prices and the need to reduce carbon emissions pose challenges to the industry.

Regulatory Hurdles: The industry faces various regulatory hurdles, including obtaining permits and adhering to environmental and safety regulations. These can lead to delays and increased compliance costs.

Market Competition: The Indian cement market is highly competitive, with several major players and numerous regional and local manufacturers. This competition can lead to price wars and margin pressures.

Infrastructure Bottlenecks: Transportation and logistics infrastructure in India can be suboptimal, leading to delays and increased costs in the supply chain.

Changing Consumer Preferences: Consumer preferences are shifting towards blended cements and green building materials. Cement manufacturers need to adapt to these changing demands and invest in research and development. The prices of key raw materials like coal, petcoke, and slag can be volatile, impacting production costs and profitability.

Monsoon Impact: The cement industry is highly dependent on weather conditions, particularly the monsoon. Monsoons can disrupt construction activities and impact demand.

Overcapacity: The Indian cement industry has faced periods of overcapacity, which can lead to price pressures and reduced profitability

To address these challenges and ensure long-term sustainability, the Indian cement industry is increasingly focusing on adopting cleaner and more energy-efficient technologies, improving supply chain logistics, and diversifying product offerings to meet changing consumer demands. Government support and policies that promote sustainable practices and reduce regulatory bottlenecks can also help the industry thrive while addressing environmental concerns.

Key Market Trends

Government Supports

As per ICRA, in FY22, the cement production in India is expected to increase by ~12% YoY, driven by rural housing demand and government’s strong focus on infrastructure development.

As per Crisil Ratings, the Indian cement industry is likely to add ~80 million tonnes (MT) capacity by FY24, the highest since the last 10 years, driven by increasing spending on housing and infrastructure activities. India is the second-largest producer of cement in the world. It accounts for more than 8% of the global installed capacity. India has a lot of potential for development in the infrastructure and construction sector and the cement sector is expected to largely benefit from it. Furthermore, on the back of rising rural housing demand, the consumption of cement in India has been growing consistently as it is one of the cheapest products to buy in terms of Rs./kg. Strong expansion of the industrial sector, which has fully recovered from the COVID-19 pandemic shock, is one of the main demand drivers for the cement industry. As a result, there is a strong potential for an increase in the long-term demand for the cement industry. Some of the recent initiatives, such as the development of 98 smart cities, are expected to significantly boost the sector.

Aided by suitable Government foreign policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have invested in the country in the recent past. A significant factor which aids the growth of this sector is the ready availability of raw materials for making cement, such as limestone and coal. Currently, the installed cement capacity in India is 553 MTPA with a production of 298 MTPA.

According to Government Initiatives

The cement demand in India is exhibiting a CAGR of 5.65% between 2016-22. As India has a high quantity and quality of limestone deposits through-out the country, the cement industry promises huge potential for growth. India has a total of 210 large cement plants, of which 77 are in Andhra Pradesh, Rajasthan, and Tamil Nadu. Nearly 32% of India's cement production capacity is based in South India, 20% in North India, 13% in Central, 15% in West India, and the remaining 20% is based in East India. India's cement production is expected to increase at a CAGR of 5.65% between FY16-22, driven by demands in roads, urban infrastructure and commercial real estate. India's cement production was expected to range between 380-390 million tonnes in FY23, a growth rate of 8-9% year-on-year (yoy).

Between FY12 and FY23, the installed capacity grew by 61% to 570 MT from 353 in FY22. The Indian cement sector's capacity is expected to expand at a compound annual growth rate (CAGR) of 4-5% over the four-year period up to the end of the FY27. It would thus begin the 2029 financial year at 715-725 MT/ year in installed capacity. India’s cement production for FY24 is expected to grow by 7-8% driven by infrastructure-led investment and mass residential projects.

The consumption of cement in India is expected to grow at a CAGR of 5.68% from FY16 to FY22. As per Crisil Ratings, the Indian cement industry is likely to add ~80 million tonnes (MT) capacity by FY24, the highest in the last 10 years, driven by increasing spending on housing and infrastructure activities. Cement consumption is expected to reach 450.78 million tonnes by the end of FY27.

Segmental Insights

Type Insights

According to the report, Portland represented the largest segment. The prominence of portland cement can be attributed to its adaptability across a spectrum of applications, from residential buildings and commercial complexes to infrastructure projects and industrial facilities. Its inherent strength, ability to set and harden underwater, and compatibility with various supplementary materials make it a preferred choice for construction professionals and engineers worldwide. The broad range of Portland cement variations, including Type I, Type II, Type III, and Type V, tailored to specific requirements such as rapid setting or sulfate resistance, further underscores its flexibility. The demand for Portland cement is supported by its established performance history, reliable characteristics, and compliance with construction standards. Moreover, its ubiquity is supported by the extensive distribution networks and manufacturing capabilities of cement companies globally. As the construction industry continues to evolve, Portland cement's legacy endures, playing a pivotal role in shaping the physical landscapes of cities and nations.

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Region Insights

West and Central India are home to abundant limestone reserves, a primary raw material in cement production. The proximity of these reserves to major cement manufacturing hubs ensures a steady supply chain, minimizing logistical complexities and reducing production costs. This competitive advantage gives manufacturers in these regions the ability to produce cement more efficiently, contributing to their dominance in the market. Furthermore, the region’s well-developed transportation networks, including road, rail, and port facilities, facilitate the seamless distribution of cement products across the country. This logistical superiority enhances the accessibility of West and Central India's cement offerings to a broader market, encompassing not only local construction projects but also those in distant states. The concentration of infrastructure development and urbanization activities in these regions further solidifies their leadership. West and Central India's dominance is also underpinned by their proactive approach to adopting advanced technologies and sustainable practices in cement production.

Recent Developments

  • FDI inflows in the industry, related to the manufacturing of cement and gypsum products, reached USD 5.49 billion between April 2000-March 2023.
  • In April 2023, the infrastructure and real estate asset class recorded USD  3 billion in PE/VC investments, an 82% increase y-o-y and a 3% increase over March 2023.
  • An MoU was signed between Star Cement Limited and the Government of Assam for an investment worth Rs. 1,400 crore (USD 170.9 million) for setting up a Cement Grinding unit in Guwahati and another Cement Grinding unit in Cachar and AEC Block and other construction manufacturing units in Guwahati.
  • Ramco Cements is planning to invest a total of USD 91.3 million towards growing its capacity FY24. Its planned investments consist of USD 15.8 million in an expansion to its Haridaspur grinding plant in Odisha and USD 75.5 million in the acquisition of land in Bommanalli, Karnataka, on which to establish a limestone mine.
  • Dalmia Cement (Bharat) is planning to invest USD 560 million following the signing of a memorandum of understanding (MoU) with the Assam government on the construction of a new cement plant in the state.
  • Real estate sector received the highest value of PE/VC investments in Q1 (January-March) of 2023 at USD 5 billion, registering an year-over-year 123% growth.
  • In 2022, PE/VC investments in real estate and infrastructure stood at USD 5.81 billion across 71 deals and USD 7.9 billion across 47 deals respectively.
  • PE/VC investments in real estate and infrastructure witnessed a sharp growth of 27%, at USD 13.7 billion in December 2022 as compared to USD 10.7 billion in December 2021.

Key Market Players

  •  Ultratech Cement
  •  Ambuja Cement
  • ACC Limited
  • Shree Cement Limited
  • Dalmia Bharat
  • Birla Corporation Limited
  • India Cement Limited
  • The Ramco Cement Limited

By Type

By Application

By Region

  • Portland
  • Blended
  • Other Types
  • Residential
  • Commercial
  • Infrastructure
  • Industrial Institutional
  • North India
  • West India
  • South India
  • East India

Report Scope:

In this report, the India Cement Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Cement Market, By Valve Type:

o   Portland

o   Blended

o   Other Types

  • India Cement Market, By Application:

o   Residential

o   Commercial

o   Infrastructure

o   Industrial Institutional

  • India Cement Market, By Region:

o   North India

o   West India

o   South India

o   East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Cement Market.

Available Customizations:

India Cement market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India Cement Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.            Product Overview

1.1.        Market Definition

1.2.        Scope of the Market

1.2.1.    Markets Covered

1.2.2.    Years Considered for Study

1.2.3.    Key Market Segmentations

2.            Research Methodology

2.1.        Objective of the Study

2.2.        Baseline Methodology

2.3.        Formulation of the Scope

2.4.        Assumptions and Limitations

2.5.        Sources of Research

2.5.1.    Secondary Research

2.5.2.    Primary Research

2.6.        Approach for the Market Study

2.6.1.    The Bottom-Up Approach

2.6.2.    The Top-Down Approach

2.7.        Methodology Followed for Calculation of Market Size & Market Shares

2.8.        Forecasting Methodology

2.8.1.    Data Triangulation & Validation

3.            Executive Summary

4.            Voice of Customers

5.            India Cement Market Outlook

5.1.        Market Size & Forecast

5.1.1.    By Value

5.2.        Market Share & Forecast

5.2.1.    By Type (Portland, Blended, and Other Types)

5.2.2.    By Application (Residential, Commercial, Infrastructure, and Industrial and Institutional)

5.2.3.    By Region

5.3.        By Company (2023)

5.4.        Market Map

6.            West India Cement Market Outlook

6.1.        Market Size & Forecast

6.1.1.    By Value 

6.2.        Market Share & Forecast

6.2.1.    By Type

6.2.2.    By Application

7.            South India Cement Market Outlook

7.1.        Market Size & Forecast

7.1.1.    By Value 

7.2.        Market Share & Forecast

7.2.1.    By Type

7.2.2.    By Application

8.            North India Cement Market Outlook

8.1.        Market Size & Forecast

8.1.1.    By Value 

8.2.        Market Share & Forecast

8.2.1.    By Type

8.2.2.    By Application

9.            East India Cement Market Outlook

9.1.        Market Size & Forecast

9.1.1.    By Value 

9.2.        Market Share & Forecast

9.2.1.    By Type

9.2.2.    By Application

10.         Market Dynamics

10.1.     Drivers

10.2.     Challenge

11.         Market Trends & Developments

12.         Company Profiles

12.1.            Ultratech Cement

12.1.1. Business Overview

12.1.2. Key Revenue and Financials

12.1.3. Recent Developments

12.1.4. Key Personnel

12.1.5. Key Product/Services

12.2.            Ambuja Cement

12.2.1. Business Overview

12.2.2. Key Revenue and Financials

12.2.3. Recent Developments

12.2.4. Key Personnel

12.2.5. Key Product/Services

12.3.            ACC Limited

12.3.1. Business Overview

12.3.2. Key Revenue and Financials

12.3.3. Recent Developments

12.3.4. Key Personnel

12.3.5. Key Product/Services

12.4.            Shree Cement Limited

12.4.1. Business Overview

12.4.2. Key Revenue and Financials

12.4.3. Recent Developments

12.4.4. Key Personnel

12.4.5. Key Product/Services

12.5.            Dalmia Bharat

12.5.1. Business Overview

12.5.2. Key Revenue and Financials

12.5.3. Recent Developments

12.5.4. Key Personnel

12.5.5. Key Product/Services

12.6.            Birla Corporation Limited

12.6.1. Business Overview

12.6.2. Key Revenue and Financials

12.6.3. Recent Developments

12.6.4. Key Personnel

12.6.5. Key Product/Services

12.7.            India Cement Limited

12.7.1. Business Overview

12.7.2. Key Revenue and Financials

12.7.3. Recent Developments

12.7.4. Key Personnel

12.7.5. Key Product/Services

12.8.            The Ramco Cement Limited

12.8.1. Business Overview

12.8.2. Key Revenue and Financials

12.8.3. Recent Developments

12.8.4. Key Personnel

12.8.5. Key Product/Services

13.         Strategic Recommendations

14.         About Us & Disclaimer

Figures and Tables

Frequently asked questions


The market size of the India Cement Market was USD 26023.83 Million in 2023.


Residential represented the largest segment. As populations continue to grow, urbanization accelerates, and economic conditions improve, the demand for housing increases. Cement, being a vital ingredient in the creation of strong and resilient structures, is the linchpin of residential construction projects.


West India dominated the market in 2023. West India represented the largest share. West and Central India are home to abundant limestone reserves, a primary raw material in cement production.


What are the major drivers for the India Cement Market?


Srishti Verma

Business Consultant
Press Release

India Cement Market growth to Grow with a CAGR of 8.04%

Dec, 2023

As the country experiences rapid economic growth and urban migration, the demand for robust infrastructure and modern urban living spaces has increased.