Indian cement consumption is estimated to grow from 265million tonnes in 2017 to 322 million tonnes in 2020, says a report by Nomura.
The surge in demand will be mainly driven by strong government focus on housing and infrastructure development.
Housing is the biggest driver of cement demand in India accounting for nearly some 65% of total cement consumption.
Overall, cement demand is likely to increase by 7-9% per annum, the report says. But it cautions of a short-term impact of the goods and services tax implementation in the second and third quarters of 2018. The report predicts a revival in cement demand from 2018 and anticipates an overall cement volume growth of 5-6% in 2018.
