Cement demand getting back on track, says India Cements
Despite the ongoing ressures from rising fuel, power and logistics costs, growing construction activity is expected to put cement demand in India back on track, according to Mr N Srinivasan, vice chairman and managing director of The India Cements Ltd. India is forecast to be the fastest-growing economy going forward with GDP predicted to improve by 7.2-7.4 per cent in 2022-23, reports the Financial Express Online.
India has seen a revival in its construction sector in 2021-22 due to pent-up demand and rising infrastructure investment. Cement production improved by 20.8 per cent in 2021-22, compared to a contraction of 10.8 per cent in 202-21, according to the Department of Industrial Policy and Promotion (DIPP). The central and southern states are reporting strong housing projects and infrastructure developments, including irrigation, road, metro and other infrastructure projects. Good rainfall during the monsoon season in the southwest also bodes well for the rural economy, boosting cement demand.
However, spiralling costs due to the war in Ukraine and its impact on coal and oil availability and prices has hit profitability with producers unable to increase cement prices sufficiently to offset these costs.
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