India production to grow by 8.1 per cent in FY10

India production to grow by 8.1 per cent in FY10
Published: 02 March 2009

Cement production in India is expected to grow by 8.1 per cent and demand is likely to rise by 7-7.5 per cent in FY 10, Centre for Monitoring Indian Economy (CMIE) has said.

While there is no visible recovery in cement demand from the real estate sector, the rise in cement dispatches and consumption can be attributed to a healthy demand from the infrastructure construction, CMIE said in its monthly report here.

The domestic cement consumption grew by 13 per cent to 15.7Mt for the second successive month in December 2008. Cement dispatches have also grown in the range of 11-12 per cent in the month of November 2008 and December 2008, the report said.

As per provisional data sourced from Cement Manufacturers Association (CMA), cement dispatches rose by 8.3 per cent at 16.1Mt in January 2009.

Cement demand from infrastructural construction has remained robust in the year 2008-09, so far. However, demand from real estate sector slowed down in the recent months due to slackening property sales, it said.