1989, when the Indian government lifted the control of cement production capacity, the cement industry has developed rapidly, with production capacity nearly doubling every 10 years. At present, India has about 455 million tons of cement production capacity, which is the second largest cement producer in the world after China. Cement production in India was 230 million tonnes in FY2011/12 and increased to 298 million tonnes in FY2017/18. India's National Cement and Building Materials Industry Bureau expects its cement production to rise to 425-435 million tons in 2020, 600 million tons in 2022, 850 million tons in 2030 and 1.35 billion tons in 2050. India's real estate projects, a large number of road construction, water conservancy and subway construction projects are the main driving forces for the growth of cement consumption demand, and the cement industry in India may continue to maintain a good development trend in the future. ICRA,
a rating agency, predicts that domestic cement demand in India will grow by 7% year-on-year in fiscal year 2018/19 and 8% year-on-year in fiscal year 2019/20. This is mainly due to the development of the real estate industry and the high investment in infrastructure construction. IBEF (India Brand Equity Foundation) confirmed that India's real estate cement consumption accounts for 67% of the national cement consumption, while infrastructure investment accounts for 13%, commercial construction accounts for 11%, and industrial construction accounts for 9%, which together constitute the annual consumption of cement in India.
In terms of infrastructure, in order to achieve comprehensive road connectivity, India has put forward a plan to give priority to the development of rural road corridors. By 2020, the long-term plan is to add 24000 kilometers of new railway lines, 11000 kilometers of double-track lines, 9500 kilometers of gauge conversion, and electrified 12000 kilometers; Two new airports, namely Navi Mumbai Airport and Goa Airport, will be built. Meanwhile, eight new airports will be built in the second and third tier cities, and 21 airports will be upgraded. By 2022, 100 smart cities will be created. In the real estate sector, with the passage of the Indian Real Estate Amendment and the Goods and Services Tax Act, a large amount of investment demand has begun to be released. In the first quarter of 2017 alone, the Indian real estate market attracted nearly $3.41 billion in global investment. In addition, the Union Ministry of Housing and Urban and Rural Affairs plans to approve 10 million new housing units by 2020; the Indian government plans to complete the construction of 60 million housing units by 2024. These development plans will stimulate the further growth of cement demand in India, and the cement industry will develop faster in the future. The development of
cement, infrastructure construction and real estate industry has provided strong support for the growth of cement consumption demand in India. It is expected that the cement market in India will be further opened in the future, and the cement industry still has high investment value. Relevant enterprises in China can actively pay attention to the development of Indian cement market, lay out cement plant projects at the right time, and actively strive for the growth opportunities of Indian cement market.
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