Indian cement demand is showing signs of acceleration after a somewhat disappointing 2024. Cement consumption expanded 6.2 per cent YoY in 2024, amounting to 444.2Mt, up from 418.1Mt in 2023. This was the slowest rate of expansion since the double-digit decline reported in 2020, during the COVID-19 pandemic.
 
Despite above-average summer temperatures weighing construction, cement output rose 11.6 per cent YoY in March 2025, according to the latest data from the Ministry of Commerce and Industry. Production expanded 10.6 per cent YoY in March 2024. In the 1Q25 output rose 12.2 per cent YoY, versus 8.5 per cent YoY in the same period of 2024.
 
Meanwhile, although cement prices have continued to tick downwards, their fall is moderating, suggesting producers are somewhat more confident that market conditions are improving. The S&P Global India purchasing managers’ index for manufacturing hit its highest level in a year in April, coming in at 58.4, well above the expansion/contraction threshold of 50. Cement prices declined two per cent YoY in March 2025, and are down 3.9 per cent YoY in the 1Q25. Prices declined 5.6 per cent YoY for 2024 as a whole as producers faced strong competition and weaker demand.
 
India Cement, which is majority-owned by UltraTech Cement, is forecasting EBITDA per tonne above INR1000 (US$11.77) in three years' time, up from INR40/t in the 1Q25, on the back of stronger pricing momentum, improving volumes and lower costs. Meanwhile, a senior official at JK Lakshmi Cement has called on the government to lower the Goods and Services Tax rate on cement from the current highest rate of 28 per cent, in a bid to further boost demand.