India’s domestic cement consumption stands at around 290kg per person, according to the Economic Survey 2025-26 released by the Ministry of Finance. The survey highlights that India remains the world’s second-largest cement producer after China.
The Indian cement industry currently comprises about 160 integrated large cement plants, 130 grinding units and 62 mini cement plants. Total installed capacity is estimated at nearly 690Mt per year, while cement production reached around 453Mt in FY2025.
The survey notes that most cement plants are located close to raw material sources. Around 85 per cent of the industry is concentrated in key states including Rajasthan, Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Gujarat, Tamil Nadu, Maharashtra, Uttar Pradesh, Chhattisgarh and West Bengal. It adds that the country has sufficient capacity to meet domestic demand, though per capita consumption remains far below the global average of 540kg.
The report also points to rising infrastructure development and urbanisation as major demand drivers, supported by government spending on highways, railways, housing and smart cities.
Improved railway efficiency has aided cement dispatches, with average daily freight loading rising from 4.2Mt in 2024 to about 4.4Mt in 2025, supported by track additions, Dedicated Freight Corridors and bulk handling reforms.
By Abdul Rab Siddiqi, Pakistan
