India’s changing trajectory

Published 07 November 2018

After a period of abnormally-high growth, India’s cement sector has begun to moderate and return to normal levels. Meanwhile, rising fuel and power costs have impacted the profitability of the major producers. Furthermore, the country’s capacity utilisation is at risk as new investments may push the supply-demand imbalance further.

Mumbai is expected to benefit from several large-scale infrastructure projects,

including a US$2.4bn airport and a new INR180bn Trans-Harbour Link bridge project

India’s economic growth surpassed expectations during the April-June 2018 period (1QFY18-19), rising to a nine-quarter high of 8.2 per cent YoY on the back of a rise in manufacturing activities. Despite the increase in GDP, economists continue to be sceptical of growth sustaining its momentum into upcoming quarters given the challenges of higher interest rates, a weak Indian rupee, rising oil prices and a falling household savings rate.

To continue reading this story and get access to all News, Articles and Video sections of the website, please Register for a subscription to International Cement Review or Login