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Cement Industry – Moving towards sustainable growth

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The cement industry in India has been steady on the path of sustainable growth, after it became a "free commodity" in 1989. The industry made phenomenal progress in terms of production volume, technology and product upgradation. The challenge now is to continue this growth in a sustainable manner. Dr J D Bapat has a few insights to share on this.

India today boasts of modern state-of-the-art large capacity cement plants, and the quality of Indian cement is at par with the best produced anywhere in the world. Moreover, India is expected to overtake developed countries like USA, UK and Canada in terms of per capita cement consumption by 2025.

In the Indian cement sector, there are 70 companies with 183 large and 360 mini cement plants; the majority (94 per cent) of the production comes from the large cement plants. The cement sector shares 1.3 per cent of the national GDP and employs about 140,000 persons. In terms of production capacity, at present, the Indian cement industry is positioned at second rank, globally. The cement production units are located near the limestone reserves, for the requirement of consistent supply of raw materials and the economy. Hence, clusters of cement plants are built near the limestone reserves; 13 such clusters account for nearly 75 per cent of the capacity. The production units away from limestone reserves are established on the split-grinding concept. Since cement is a high-bulk-low-value commodity, the competition is localised, as the cost of transportation to longer distances often makes the product uncompetitive in distant markets. The cement consumption is linked to the cycles of economy and the climate, reaching its annual peak in the month of March and bottom in the months of August-September.

Growing energy demand
The energy consumption per unit mass of production, both thermal and electrical, has been brought down considerably through modernisation and productivity enhancement efforts. The thermal and electrical energy consumption achieved in the modern Indian cement plant is comparable with the best obtained globally. The decomposition of the raw material, limestone, creates most (about 60 per cent) of the cement industry’s direct CO2 emissions; the rest comes from coal burning and power generation. Whereas the cement installed capacity has increased from 168×106 t/a in 2006 to nearly 350×106 t/a in 2013, the CO2 emissions have also increased correspondingly though the rate of increase is lower.

Reduced emissions
In fact, a study conducted by the World Business Council for Sustainable Development (WBCSD) indicates that the net CO2 emissions per tonne of cementitious, globally, have reduced by 17 per cent. This has been achieved mainly by partial substitution of clinker with the Pozzolanic and cementitious materials, such as fly ash and blast furnace slag. The proportion of blended cement produced the country is currently about 67 per cent and is likely to touch 80 per cent of the total, in the coming years. It could be said that the cement industry in India has achieved a significant partial decoupling of economic growth, represented by the cement production and absolute CO2 emissions.

Some Indian cement majors have signed a co-operation pact to support low-carbon investments in India. The pact was signed in Geneva with the member companies of WBCSD Cement Sustainability Initiative and International Finance Corporation (IFC). There are some negative factors that need to be tackled, some through technology upgradation and some through improved policy framework.

The electricity supply is unreliable in many areas of the country, hence cement producers have installed their own captive power plants with high efficiency boilers and, more recently, waste heat recovery installations. Although the specific power consumption has been substantially reduced through modernization and productivity enhancement measures, there are certain barriers to bring it down further, namely high investment costs required for major retrofits, stringent emission limits require more power for dust separation and demand for high performance requires substantially high grinding energy for fine grinding of cement.

Alternative fuel
The fuel used in cement manufacture is mineral coal. In view of the poor railway transport linkage and the low quality and high cost of coal in the open market, many cement companies import coal, which is expensive. The alternate fuels in the kiln reduce dependence on coal. Some plants have substituted mineral coal with petcoke (solid carbonaceous residue produced by thermal decomposition of heavy petroleum fractions or cracked stocks, or both), partially or fully, for kiln burning. The alternative fuels currently used by the cement industry include domestic and industrial wastes (mainly solid).

The cement kiln is particularly well-suited for such fuels for good reasons: the organic constituents (even toxic) are completely destroyed due to high temperature, long residence time and oxidising condition in the kiln, the acidic gases get neutralised coming in contact with alkaline materials in the kiln, the energy component substitutes for fossil fuels and the inorganic components i.e., ashes, get integrated into the clinker product. These are effective substitutes with lower CO2 emissions than traditional solid fuels. The typical alternative fuels used by the cement industry are pre-treated industrial and municipal solid wastes (domestic waste), discarded tires, waste oil and solvents, plastics, textiles and paper residues, biomass: animal meal, logs, wood chips and residues, recycled wood and paper, agricultural residues like rice husk, sawdust, sewage sludge, biomass crops. These wastes may otherwise be burnt in incinerators, land filled or improperly destroyed. The substitution of alternate fuels for cement production is about 10 per cent, globally; in India it is much less. In some European countries, the average substitution rate is over 50 per cent for the cement industry.

Cement capacities
The report prepared by the Tariff Commission, Government of India, indicates reduction in the cement capacity utilisation from 93per cent in 2006-07 to 74 per cent in 2010-11, and the situation has not much changed since then. However the requirement of the installed capacity to the tune of 1035×106 t by 2027, almost three times the current installed capacity, has also been projected. The cement demand will be mainly driven by the infrastructure and housing sectors, in the coming years. More than improving the capacity utilisation, it is likely to create problem in the availability of limestone reserves. The forecast says, with the current level of capacity utilisation, the limestone reserves may last for only the next 35-41 years. That is an area of concern.

The following measures may be considered, if the march of Indian cement industry towards sustainable growth is to be continued.

Petcoke burning: Besides the cost savings, the use of petcoke enables use of low or marginal grade limestone as raw material. This single factor leads to the extension of mine life, natural resource conservation and reduction in CO2 emissions.

Alternate fuels: Technically, it is possible to increase the substitution rate of alternate fuels for the kiln. Some Indian cement majors have already taken an initiative in that direction. The United Nations Environment Programme’s (UNEP) Basel Convention (March 1989) discussed and devised the "Technical guidelines on the environmentally sound co-processing of hazardous wastes in cement kilns." These guidelines were adopted by the tenth meeting of the Conference of the Parties to the Basel Convention, in October 2011; India has ratified these guidelines. An appropriate amendment to the Hazardous Waste Management (HWM) Rules is required so that pre- and co-processing can be efficiently undertaken by the cement industry, in gainfully utilising the wastes.

Limestone utilisation: Ensure gainful utilisation of low and marginal grade limestone through application of appropriate technology.

Blended cement: The application of blended cement improves strength and durability of concrete. The use of Portland Pozzolana Cement (PPC) and Portland slag cement (PSC) should be encouraged in all public works. It appears, some government departments still have reservations about the use blended cement or the application of mineral admixtures in concrete, which could be sorted out through discussion. The relevant Indian Standard Specifications should be modified, in line with ASTM C5952, to allow greater utilisation of mineral admixtures in cement and concrete. The high volume fly ash concrete (HVFAC) and blending of limestone powder with cement are some examples. Huge quantity of ash is dumped in lagoons near the thermal power stations. Efforts are required to use it in construction, without or with processing. Rice husk ash (RHA) is a promising mineral admixture, for Indian conditions. The government may consider starting a ‘RHA Mission’for its proper utilisation.

Infrastructure and manpower: The growth in cement production will lead to an increase in the demand of various resources required for producing and distributing cement. The transport infrastructure and availability of skilled manpower may become major bottlenecks, unless proactive steps are taken.

References

  1. "Mineral Admixtures in Cement and Concrete", Jayant D. Bapat, CRC Press, Taylor & Francis Group, Boca Raton, FL, USA, 2012.
  2. Parlikar Ulhas, "From Grey to Green: Waste Co-processing in Cement Kilns", Cement Business & Industry (CBI) India & South Asia 2013, 9-10 October 2013, Mumbai, India.
  3. "Review of Performance of Cement Industry for the Year 2010-11", Tariff Commission, Government of India.
  4. "Cement Technology Roadmap 2009", World Business council for Sustainable Development.
  5. "The Cement Sustainability Initiative (CSI)", World Business council for Sustainable Development, Joe Phelan, October 2013.
  6. Bapat J D, "Petcoke as Fuel for Cement Production: Benefits and Challenges", Cement Business & Industry (CBI) India & South Asia 2013, 9-10 October 2013, Mumbai, India. http://www.slideshare.net/jdbapat/petcoke-fuel-forcementdrbapat
  7. Sarda Rajesh, "Indian Cement Sector Outlook", Cement Business & Industry (CBI) India & South Asia 2013, 9-10 October 2013, Mumbai, India.

Dr JD BAPAT

  • Jayant D. Bapat works as an independent consultant for cement manufacturing, concrete, He is a TUV certified CDM Expert in Energy and Environment for Cement Sector.
  • Earlier (1994-2011) he was a faculty, Director and Principal at the engineering colleges affiliated to the University of Pune (India). He also worked at senior positions at the National Council for Cement and Building materials (NCB) (1975-1991), New Delhi and Walchandnagar Industries Ltd. (WIL) (1991-1994), Walchandnagar. WIL is a leading cement machinery manufacturer. He has 38 years long standing experience in cement manufacturing, testing durability of concrete and utilisation of industrial and agricultural wastes in building materials. He has gained hands-on experience in preparing technical specifications for modern cement plants and equipment costing.
  • His book, "Mineral Admixtures in Cement and Concrete" has been published by CRC Press, USA, in August 2012. You can know more about him and his work at www.drjdbapat.com.

Indian Standard Specifications should be modified, in line with ASTM C5952 to allow greater utilisation of mineral admixtures in cement.

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Economy & Market

Walplast Expands HomeSure MasterTouch Line

It is a high-quality yet affordable wall paint

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Walplast Products, a leading manufacturer of building and construction materials, has unveiled the expansion of its esteemed HomeSure MasterTouch portfolio with the launch of the new HomeSure MasterTouch Lush (Interior & Exterior Emulsion) and HomeSure MasterTouch Prime (Interior & Exterior Primer). These new offerings are strategically positioned as high-quality, yet affordable, high-performance solutions designed to enable individuals to achieve their dream of beautiful homes and “Elevating Lifestyles” (Raho Shaan Se).

The HomeSure MasterTouch Lush Interior Emulsion is a high-quality yet affordable wall paint that delivers best-in-class coverage and an aesthetically appealing, durable finish. Formulated with premium pigments and acrylic binders, it ensures excellent coverage, colour retention, and resistance to fungus, making it an ideal choice for homeowners seeking durability and value. Meanwhile, the HomeSure MasterTouch Lush Exterior Emulsion is specifically engineered to withstand varying weather conditions, particularly in regions with frequent rain and moderate humidity. With strong adhesion and UV-resistant properties, it protects exterior walls against algae growth and black spots while maintaining an elegant matte appearance.

Adding to its comprehensive range, Walplast introduces the HomeSure MasterTouch Prime Interior and Exterior Primers, offering superior adhesion, excellent whiteness, and long-lasting durability. These primers enhance the topcoat application, ensuring a flawless, smooth finish for both interior and exterior surfaces. Engineered with excellent workability and eco-friendly attributes, the primers are free from heavy metals, low VOC (Volatile Organic Compounds), and protect against algae and fungus, making them a reliable base for any painting project.

“At Walplast, we are committed to providing innovative and accessible solutions that enhance the beauty and longevity of homes. The HomeSure MasterTouch range is designed with the modern homeowner in mind—delivering affordability without compromising on quality. Our focus is to empower individuals to bring their dream homes to life with reliable and superior products,” said Kaushal Mehta, Managing Director of Walplast.

Aniruddha Sinha, Senior Vice President Marketing, CSR, and Business Head – P2P Division, Walplast added, “The HomeSure MasterTouch Lush and Prime range align with our vision of offering peace of mind to customers with durable, aesthetic, and affordable solutions for every home. The “Elevate your lifestyle” reflects our belief that everyone deserves to live in a home they take pride in. With this launch, we continue our mission of enabling dreams of beautiful homes for all.”

The newly launched products will be available across key markets, including Maharashtra, Rajasthan, Gujarat, Uttar Pradesh, Madhya Pradesh, Jharkhand, and Chhattisgarh. The HomeSure MasterTouch portfolio also includes premium emulsions such as Bloom and Vivid, as well as a premium primer, catering to diverse customer needs in the construction and home improvement sectors.

Walplast’s HomeSure portfolio encompasses a comprehensive range of construction solutions, including Wall Putty, Tile Adhesives, Gypsum-based products, Construction Chemicals, AAC blocks, and more. With a robust network of over 800 active distributors, 6000 dealers, and more than 65,000 influencers, the HomeSure division continues to be the preferred choice in the construction ecosystem, reinforcing Walplast’s position as an industry leader.

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Concrete

Turning Carbon into Opportunity

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Carbon Capture, Utilisation, and Storage (CCUS) is crucial for reducing emissions in the cement industry. Kanika Mathur explores how despite the challenges such as high costs and infrastructure limitations, CCUS offers a promising pathway to achieve net-zero emissions and supports the industry’s sustainability goals.

The cement industry is one of the largest contributors to global CO2 emissions, accounting for approximately seven to eight per cent of total anthropogenic carbon dioxide released into the atmosphere. As the world moves towards stringent decarbonisation goals, the cement sector faces mounting pressure to adopt sustainable solutions that minimise its carbon footprint. Among the various strategies being explored, Carbon Capture, Utilisation, and Storage (CCUS) has emerged as one of the most promising approaches to mitigating emissions while maintaining production efficiency. This article delves into the challenges, opportunities, and strategic considerations surrounding CCUS
in the cement industry and its role in achieving net-zero emissions.

Understanding CCUS and Its Relevance to Cement Manufacturing
Carbon Capture, Utilisation, and Storage (CCUS) is an advanced technological process designed to capture carbon dioxide emissions from industrial sources before they are released into the atmosphere. The captured CO2 can then be either utilised in various applications or permanently stored underground to prevent its contribution to climate change.
Rajesh Kumar Nayma, Associate General Manager – Environment and Sustainability, Wonder Cement says, “CCUS is indispensable for achieving Net Zero emissions in the cement industry. Even with 100 per cent electrification of kilns and renewable energy utilisation, CO2 emissions from limestone calcination—a key raw material—remain unavoidable. The cement industry is a major contributor to
GHG emissions, making CCUS critical for sustainability. Integrating CCUS into plant operations ensures significant reductions in carbon emissions, supporting the industry’s Net Zero goals. This transformative technology will also play a vital role in combating climate change and aligning with global sustainability standards.”
The relevance of CCUS in cement manufacturing stems from the inherent emissions produced during the calcination of limestone, a process that accounts for nearly 60 per cent of total CO2 emissions in cement plants. Unlike other industries where CO2 emissions result primarily from fuel combustion, cement production generates a significant portion of its emissions as an unavoidable byproduct. This makes CCUS a particularly attractive solution for the sector, as it offers a pathway to drastically cut emissions without requiring a complete overhaul of existing production processes.
According to a Niti Ayog report from 2022, the adverse climatic effects of a rise in GHG emissions and global temperatures rises are well established and proven, and India too has not been spared from adverse climatic events. As a signatory of the Paris Agreement 2015, India has committed to reducing emissions by 50 per cent by the year 2050 and reaching net zero by 2070. Given the sectoral composition and sources of CO2 emissions in India, CCUS will have an important and integral role to play in ensuring India meets its stated climate goals, through the deep decarbonisation of energy and CO2 emission intensive industries such as thermal power generation, steel, cement, oil & gas refining, and petrochemicals. CCUS can enable the production of clean products while utilising our rich endowments of coal, reducing imports and thus leading to an Indian economy. CCUS also has an important role to play in enabling sunrise sectors such as coal gasification and the nascent hydrogen economy in India.
The report also states that India’s current cement production capacity is about 550 mtpa, implying capacity utilisation of about 50 per cent only. While India accounts for 8 per cent of global cement capacity, India’s per capita cement consumption is only 235 kg, and significantly low compared to the world average of 500 kg per capita, and China’s per capita consumption of around 1700 kg per capita. It is expected that domestic demand, capacity utilisation and per capita cement consumption will increase in the next decade, driven by robust demand from rapid industrialisation and urbanisation, as well as the Central Government’s continued focus on highway expansions, investment in smart cities, Pradhan Mantri Awas Yojana (PMAY), as well as several state-level schemes.

Key Challenges in Integrating CCUS in Cement Plants Spatial Constraints and Infrastructure Limitations
One of the biggest challenges in integrating CCUS into existing cement manufacturing facilities is space availability. Most cement plants were designed decades ago without any consideration for carbon capture systems, making retrofitting a complex and costly endeavour. Many facilities are already operating at full capacity with limited available space, and incorporating additional carbon capture equipment requires significant modifications.
“The biggest challenge we come across repeatedly is that most cement manufacturing facilities were built decades ago without any consideration for carbon capture systems. Consequently, one of the primary hurdles is the spatial constraints at these sites. Cement plants often have limited space, and retrofitting them to integrate carbon capture systems can be very challenging. Beyond spatial issues, there are additional considerations such as access and infrastructure modifications, which further complicate the integration process. Spatial constraints, however, remain at the forefront of the challenges we encounter” says Nathan Ashcroft, Carbon Director, Stantec.
High Capital and Operational Costs CCUS technologies are still in the early stages of large-scale deployment, and the costs associated with implementation remain a significant barrier. Capturing, transporting, and storing CO2 requires substantial capital investment and increases operational expenses. Many cement manufacturers, especially in developing economies, struggle to justify these costs without clear financial incentives or government support.
Regulatory and Policy Hurdles The regulatory landscape for CCUS varies from region to region, and in many cases, clear guidelines and incentives for deployment are lacking. Establishing a robust framework for CO2 storage and transport infrastructure is crucial for widespread CCUS adoption, but many countries are still in the process of developing these policies.

Waste Heat Recovery and Energy Optimisation in CCUS Implementation
CCUS technologies require significant energy inputs, primarily for CO2 capture and compression. One way to offset these energy demands is through the integration of waste heat recovery (WHR) systems. Cement plants operate at high temperatures, and excess heat can be captured and converted into usable energy, thereby reducing the additional power required for CCUS. By effectively utilizing waste heat, cement manufacturers can lower the overall cost of carbon capture and improve the economic feasibility of CCUS projects.
Another critical factor in optimising CCUS efficiency is pre-treatment of flue gases. Before CO2 can be captured, flue gas streams must be purified and cleaned to remove particulates and impurities. This additional processing can lead to better capture efficiency and lower operational costs, ensuring that cement plants can maximise the benefits of CCUS.

Opportunities for Utilising Captured CO2 in the Cement Sector
While storage remains the most common method of handling captured CO2, the utilising aspect presents an exciting opportunity for the cement industry. Some of the most promising applications include:

Carbonation in Concrete Production
CO2 can be injected into fresh concrete during mixing, where it reacts with calcium compounds to form solid carbonates. This process not only locks away CO2 permanently but also enhances the compressive strength of concrete, reducing the need for additional cement.

Enhanced Oil Recovery (EOR) and Industrial Applications
Captured CO2 can be used in enhanced oil recovery (EOR), where it is injected into underground oil reservoirs to improve extraction efficiency. Additionally, certain industrial processes, such as urea production and synthetic fuel manufacturing, can use CO2 as a raw material, creating economic opportunities for cement producers.

Developing Industrial Hubs for CO2 Utilisation
By co-locating cement plants with other industrial facilities that require CO2, manufacturers can create synergies that make CCUS more economically viable. Industrial hubs that facilitate CO2 trading and re-use across multiple sectors can help cement producers monetise their captured carbon, improving the financial feasibility of CCUS projects.

Strategic Considerations for Large-Scale CCUS Adoption Early-Stage Planning and Feasibility Assessments
Cement manufacturers looking to integrate CCUS should begin with comprehensive feasibility studies to assess site-specific constraints, potential CO2 storage locations, and infrastructure requirements. A phased implementation strategy, starting with pilot projects before full-scale deployment, can help mitigate risks and optimise
system performance.
Neelam Pandey Pathak, Founder and CEO, Social Bay Consulting and Rozgar Dhaba says, “Carbon Capture, Utilisation and Storage (CCUS) has emerged as a transformative technology that holds the potential to revolutionise cement manufacturing by addressing its carbon footprint while supporting global sustainability goals. CCUS has the potential to be a game-changer for the cement industry, which accounts for about seven to eight per cent of global CO2 emissions. It addresses one of the sector’s most significant challenges—emissions from clinker production. By capturing CO2 at the source and either storing it or repurposing it into value-added products, CCUS not only reduces
the carbon footprint but also creates new economic opportunities.”

Government Incentives and Policy Support
For CCUS to achieve widespread adoption, governments must play a crucial role in providing financial incentives, tax credits, and regulatory frameworks that support carbon capture initiatives. Policies such as carbon pricing, emission reduction credits, and direct subsidies for CCUS infrastructure can make these projects more economically viable for cement manufacturers.
Neeti Mahajan, Consultant, E&Y India says, “With new regulatory requirements coming in, like SEBI’s Business Responsibility and Sustainability Reporting for the top 1000 listed companies, value chain disclosures for the top 250 listed companies, and global frameworks to reduce emissions from the cement industry – this can send stakeholders into a state of uncertainty and unnecessary panic leading to a semi-market disruption. To avoid this, communication on technologies like carbon capture utilisation and storage (CCUS), and other innovative tech technologies which will pave the way for the cement industry, is essential. Annual reports, sustainability reports, the BRSR disclosure, and other broad forms of communication in the public domain, apart from continuous stakeholder engagement internally to a company, can go a long way in redefining a rather traditional industry.”

The Role of Global Collaborations in Scaling CCUS
International collaborations will be essential in driving CCUS adoption at scale. Countries that have made significant progress in CCUS, such as Canada, Norway, and the U.S., offer valuable insights and technological expertise that can benefit emerging markets. Establishing partnerships between governments, industry players, and research institutions can help accelerate technological advancements and facilitate knowledge transfer.
Raj Bagri, CEO, Kapture, says “The cement industry can leverage CCUS to capture process and fuel emissions and by using byproducts to replace existing carbon intensive products like aggregate filler or Portland Cement.”
Organisations like the Carbon Capture Knowledge Centre in Saskatchewan provide training programs and workshops that can assist cement manufacturers in understanding CCUS implementation. Additionally, global symposiums and industry conferences provide platforms for stakeholders to exchange ideas and explore collaborative opportunities.
According to a Statista report from September 2024, Carbon capture and storage (CCS) is seen by many experts as a vital tool in combating climate change. CCS technologies are considered especially important for hard-to-abate industries that cannot be easily replaced by electrification, such as oil and gas, iron and steel, and cement and refining. However, CCS is still very much in its infancy, capturing just 0.1 per cent of global CO2 emissions per year. The industry now faces enormous challenges to reach the one billion metric tons needing to be captured and stored by 2030 and live up to the hype.
The capture capacity of operational CCS facilities worldwide increased from 28 MtCO2 per year in 2014 to around 50 MtCO2 in 2024. Meanwhile, the capacity of CCS facilities under development or in construction has risen to more than 300 MtCO2 per year. As of 2024, the United States had the largest number of CCS projects in the pipeline, by far, with 231 across various stages of development, 17 of which were operational. The recent expansion of CCS has been driven by developments in global policies and regulations – notably the U.S.’ Inflation Reduction Act (IRA) – that have made the technology more attractive to investors. This has seen global investment in CCS more than quadruple since 2020, to roughly $ 11 billion in 2023.

The Future of CCUS in the Cement Industry
As technology advances and costs continue to decline, CCUS is expected to play a crucial role in the cement industry’s decarbonisation efforts. Innovations such as cryogenic carbon capture and direct air capture (DAC) are emerging as promising alternatives to traditional amine-based systems. These advancements could further enhance the feasibility and efficiency of CCUS in cement manufacturing.
In conclusion, while challenges remain, the integration of CCUS in the cement industry is no longer a question of “if” but “when.” With the right mix of technological innovation, strategic planning, and policy support, CCUS can help the cement sector achieve net zero emissions while maintaining its role as a vital component of global infrastructure development.

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Concrete

Exploring the Indo-German Alliance

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ICR explores the Indo-German partnership is driving growth through collaboration in trade, technology, sustainability, and workforce development, with a strong focus on SMEs and innovation. By leveraging each other’s strengths, both nations are fostering industrial modernisation, skill development, and economic resilience for a sustainable future.

The optimism expressed by the panellists suggests that Indo-German collaboration is not only beneficial for both countries but also sets a powerful example for global partnerships.
In a rapidly evolving global economy, strategic international collaborations are more important than ever. One such partnership that continues to gain momentum is between India and Germany. This collaboration spans a wide array of sectors—from trade and technology to sustainability and workforce development—and is already delivering impressive results. The recent First Construction Council webinar, titled ‘Indo-German Partnership: Collaborating for Growth’, provided an extensive look at this vital alliance. Moderated by Rajesh Nath, Managing Director, VDMA India, the session explored the evolution, opportunities, and challenges that define the Indo-German partnership, which saw an impressive $33 billion in bilateral trade in 2023.

From Trade to Technology
The Indo-German relationship has undergone a remarkable transformation over the years, transitioning from basic trade to multifaceted cooperation. Rajesh Nath opened the session by underscoring the dynamic nature of Indo-German trade, with more than 1,800 German companies now operating in India. “Machinery accounts for nearly a third of our bilateral trade,” Nath shared, highlighting sectors such as renewable energy, digitalisation, and green hydrogen as key growth areas for the future.
V.G. Sakthikumar, Managing Director, Schwing Stetter India, reflected on his company’s own journey, which mirrors the broader evolution of the Indo-German partnership. When Schwing Stetter first set up operations in India in 1998, the country was considered a relatively small market. Today, India has become the largest manufacturing hub for Schwing Stetter, with exports flowing to markets in Europe, the U.S., and even China. “Germany trusted India to produce high-quality products at competitive prices, and now, we export machinery back to Germany and America,” said Sakthikumar, underscoring the mutual growth that has defined this partnership.

India’s Industrial Modernisation
Germany has played a pivotal role in India’s industrial modernisation, particularly in advancing manufacturing capabilities. Maanav Goel, Managing Director, Hoffmann Quality Tools India, discussed how the historical and contemporary aspects of Indo-German cooperation have shaped both nations’ industries. “Before 1947, our interactions were largely limited to cultural exchanges,” Goel said, explaining how industrial cooperation became central after India’s independence. “Today, German companies like Hoffmann have developed high-quality tools tailored to industries such as automotive and aerospace.”
Goel also pointed out that German companies have been instrumental in advancing India’s Industry 4.0 ambitions. “Sustainability is not just a cost; it’s an investment,” he added, referring to the energy-efficient and precision-engineered solutions Hoffmann provides to enhance India’s manufacturing sector.

Research, Innovation, and the Role of Technology
Innovation has always been the core of the Indo-German partnership. Anandi Iyer, Director, Fraunhofer Office India, highlighted how research and innovation are driving both countries toward a more sustainable future. As the world’s largest applied research ecosystem, Fraunhofer has introduced technologies ranging from digital twins for manufacturing to waste-to-construction materials, all aimed at improving efficiency and sustainability in Indian industries.
Reflecting on Fraunhofer’s work in India, Iyer noted that India is not just a market for technology, but a hub of entrepreneurship and rapid implementation. “We entered India in 2008, and today we earn over €70 million annually from Indian industry contracts,” she shared. Iyer also stressed the importance of democratising technology, especially for India’s small and medium enterprises (SMEs). “SMEs are crucial to the future of both India and Germany. By creating innovation clusters similar to Germany’s, we can ensure that technology benefits all businesses, big and small,” she said.

Cornerstone of Growth
SMEs are a critical focus in the Indo-German partnership. Manoj Barve, India Head, BVMW, emphasised their importance in both countries. “In Germany, SMEs contribute 55 per cent to GDP and employ 60 per cent of the workforce,” Barve said. “India’s SMEs, which contribute 30 per cent to the country’s GDP, are equally important for job creation and economic growth.”
Barve also discussed the complementary strengths of India and Germany. India’s prowess in IT, coupled with Germany’s engineering expertise, provides a fertile ground for collaboration. “Germany’s advanced technology can support India’s ‘Make in India’ initiative, while India’s cost-effective manufacturing can help Germany tackle its energy-led inflation,” he explained.
Gender diversity was another issue Barve touched upon, pointing out that Germany’s workforce is 62 per cent female, supported by policies such as parental leave and flexible working hours. “India, at 37 per cent, has room to grow in this area,” he added. “Addressing issues like workplace safety and societal norms can help unlock the full potential of Indian women in the workforce.”

Navigating Challenges and Expanding Reach
The webinar also addressed the challenges that SMEs face when attempting to expand internationally. Nitin Pangam, Managing Director, Maeflower Consulting, emphasised the need for deeper market insights and sustained engagement to succeed globally. “SMEs need to understand target markets better, whether it’s leveraging the Inflation Reduction Act in the U.S. or tapping into infrastructure projects in Saudi Arabia,” Pangam said.
He also stressed the importance of government support for SMEs. “Institutions like Invest India and VDMA India play a crucial role in guiding SMEs toward international expansion,” Pangam added, suggesting that India could benefit from models like Enterprise Ireland’s, which helps SMEs navigate global markets.

Shared Responsibility
An often overlooked but vital aspect of Indo-German collaboration is skill development. Schwing Stetter’s Sakthikumar discussed how the company has been proactive in training operators and welders, addressing the significant skills gap in India’s construction machinery sector. “We have partnered with state governments to create training programs that produce highly skilled workers, and some of our welding schools have produced global champions,” he shared.
Iyer also highlighted the potential for India to adopt Germany’s dual education system, which sees 5 per cent of the workforce engaged in training at any given time. “This system can be a model for India, where industry-driven skill programs can help bridge the skills gap and align workers with evolving technologies,” Iyer explained.

Looking to the Future
The future of the Indo-German partnership lies in embracing sustainability, digitalisation, and workforce empowerment. Rajesh Nath summarised the webinar’s discussions, emphasising that sustainability and supply chain resilience will play a defining role in the relationship moving forward. “Leveraging technology and deepening institutional collaboration are key to the future,” Nath concluded, signalling the importance of continued cooperation in these areas.
The optimism expressed by the panellists suggests that Indo-German collaboration is not only beneficial for both countries but also sets a powerful example for global partnerships. As Iyer aptly remarked, “The future is bright, but it requires strategic steps to make SMEs and innovation the engines of growth.”
The Indo-German partnership represents a model of what strategic international cooperation can achieve. By focusing on trade, technology, sustainability, and workforce development, both nations have been able to create a mutually beneficial relationship that drives growth and innovation. As India and Germany move forward, their cooperation will serve as a blueprint for growth in the years to come.

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