Concrete
The main task in cement production is improving sustainability
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Prakhar Shrivastava, Head – Corporate Quality, JK Cement Limited, discusses the smart use of supplementary cementitious materials to improve cement production and make cement manufacturing more integral to a circular economy.
What are supplementary cementitious materials? Tell us more about their nature
of origin.
Supplementary Cementitious Materials (SCM) are materials that are obtained from other industrial waste as by-product and none have their own/individually hardened properties but contribute by grinding with clinker or blending with Ordinary Portland Cement (OPC) through hydraulic and/or pozzolanic activity. These waste products are used as supplementary cementitious materials so that the maximum utilisation of wastes is possible. SCM play a significant role in increasing the workability of the product and enhance the serviceability or durability, thus, decreasing the permeability, aiding in pumpability and finishability.
Typical SCM are flyash, slag, silica fume, natural ashes, rice husk ash, burnt shale, metakaolinite, calcined clay and natural pozzolana i.e., volcanic glass, etc. Among them, flyash and slag are widely used by cement industries for production of PPC and PSC.
Flyash or pulverised fuel ash is formed during combustion of coal from coal-fired electric and steam generating plants and obtained by electrostatic or mechanical precipitation of dust like particles from the flue gases. Earlier, it was recognised as an industrial waste but now has become an important industrial by-product.

Steel slag, a by-product of steel industries, formerly referred to as ground, granulated blast-furnace slag, is a glassy, granular material formed when molten, iron blast-furnace slag is rapidly chilled – typically by water sprays or immersion in water – and subsequently ground to cement fineness.
Tell us about the supplementary cementitious materials and their composition used by your organisation?
Supplementary cementitious materials are soluble siliceous, alumina-siliceous or calcium alumina-siliceous powders used as partial replacements of clinker in cements or as partial replacements of portland cement in concrete mixtures.
At JK Cement, we manufacture Portland Pozzolana Cement (PPC) from all our plants with addition of flyash up to 35 per cent and PPC in premium category with 20 per cent flyash to promote usage of only blended cement to fulfil customer requirements by achieving equivalent strength properties of OPC (Ordinary Portland Cement). At our south India plant in Muddapur, we also manufacture Portland Slag Cement (PSC) with the addition of slag at approximately 65 per cent, meeting all the internal product quality norms.
In our plants, flyash is sourced from different thermal power plants in accordance to the quality, cost and suitability criteria of the plants. Similarly, slag is sourced from steel plants located in Karnataka and Goa. The typical chemical composition and quality requirements as per Indian standards of flyash and slag are mentioned in the table:

Does the use of supplementary cementitious materials impact the process of cement manufacturing?
Impact of SCM can be categorised in two aspects i.e., challenges and benefits. Below are the few challenges faced during the process of cement manufacturing.


- Major SCM are available across the country, such as, dry flyash and pond ash; however, less availability of dry flyash directly connected with thermal power plants (TPP) operation.
- Though there is abundance of pond ash, the major concern in its usage is the high moisture content and coarser size, which creates constraint of jamming, leading to lower production, higher power consumption, blended cement quality and slower production.
- Additional feeding systems are required.
- Challenges of further grinding of abrasive/harder to grind materials such as coarser pond ash, GGBS, copper slag.
- It may increase the cost of the product especially where some SCM are more expensive than cement. i.e., the availability of SCM.
- SCM used for the clinkerisation process required high grade limestone to maintain the desired quality of clinker which affects the mine life.
What are the key advantages of using supplementary cementitious materials in the cement manufacturing process?
The key advantages of using supplementary cementitious materials are:
- Increased clinker substitution; reduces CO2 emission per ton of cement production.
- Reduces use of fossil fuel per ton of cement production.
- Increases the life of limestone mines.
- Reduces consumption of thermal and electrical energy.
- Reduces water consumption.
- Reduces generation of garbage materials at the location, which in turn leads to clean India.
How does the use of supplementary materials increase the profitability of the cement manufacturing for your organisation?
SCM play a vital role in increasing the profitability of the cement manufacturing; with the addition of SCM during cement production, it enhances the overall cement capacity. All our plants are using SCM which are available nearby to plant location. We are investing a lot at locations where SCM are available at a lower cost value and hence reducing the overall cost of cement as compared to clinker cost. Also, these SCM help in reducing the power consumption per ton of cement due to increase in cement volume. Another benefit is the increased cement volume that results in intangible benefit by increasing limestone mine life and conserving natural resources of compendious materials.
Tell us about the quality standards and checks implemented for the final product made using supplementary materials.
The Indian standards have been framed to define the quality of SCM by BIS. Each SCM has a specific Indian standard with specific quality norms like for pulverised fuel ash (IS 3812 Part-1), slag (IS 12089), calcined clay pozzolana (IS: 1344-1981 (Part-II) etc. According to IS specification; internal quality standards have been specified to monitor the SCM quality and these quality specifications are specified in the purchase order for vendor reference. A structured and systematic approach is made to check the SCM quality by the quality control department and all test results are recorded in SIT formats.
In order to make different grade products following checks have been implemented
- Has established a distinct location/yard/silo for proper storage of SCM and to avoid contamination.
- Different hoppers are assigned for each type of material storage and to introduce during the manufacturing process.
- For controlled and calculated addition; weigh feeders are installed.
- For each process or step, quality norms have defined and organised the monitoring and testing in stipulated frequency as per IS requirement.
- Prior to dispatch and release of product in market or to customer the prescribed quality testing performed for quality reassurance.
Tell us about the role of technology in deciding the proportions of supplementary cementitious materials.
Today, the main task in cement production is improving sustainability by reducing emissions. This is achieved by promoting the use of green fuels that lower the conventional fuel consumption and by utilising the alternative raw materials i.e. SCM while producing reliable products at a competitive cost for the construction industry. Less clinker and more SCM is the challenge for the cement industry. The control and optimisation of clinker and cement reactivity is one important key to reach these targets. A problem today is that clinker and cement reactivity are not quantified at cement plants, except by slow and indirect methods like compressive strength testing.
XRF and XRD studies are valuable to understand the composition. However, quantitative XRD does not directly assess the reactivity of SCM. Recently isothermal heat flow calorimetry techniques have been suggested as a new analytical tool for process control and deciding the proportion of SCM in cement.
Recently, the beneficiation or processing of flyash has become hugely important. Flyash Beneficiation Technology or process converts waste from coal-fired power stations (pulverised fuel ash or flyash) by separating the constituent minerals to generate a range of sustainable, environment-friendly products with unique physical and chemical characteristics.
What are the major challenges you face while using supplementary materials for cement manufacturing?
The major concern is availability in terms of quality and quantity; the second factor is cost because the overall cost depends on the distance between the generation unit to the cement manufacturing plant which eventually impacts the cost of cement.
Constantly the SCM demand is increasing and the availability of good quality SCM is very limited and on high cost, the high moisture content of slag and pond ash creates operational challenges. The quality of SCM, largely influenced by the existence of high quartz, heavy metals, alkalis and the fineness that determine the quality of cement. Indian flyash is more crystalline compared to what is generated in other countries and the ratio of formers (SiO2,+Al2O3+Fe2O3) to network modifiers (Na2O+K2O+CaO+MgO) in the Indian flyash is very high and imbalanced.
Depending on the source of coal that varies from mine to mine impacts the composition of flyash like bituminous coals, sub-bituminous and lignite coal determine the flyash colour, fineness and other radicals. Among all SCM, flyash is mostly used in cement plants and as thermal power plants (TPP) are the source of flyash, the present availability of coal and its high cost is a major concern for TPP operations that is affecting the flyash generation. The availability and sources of slag in India are limited, which are affecting its usage in blended cement. Except for flyash and slag, other SCM availability is very less and not too economical.
How does the use of cement made of supplementary materials impact its carbon footprint?
We have committed to achieving our SBTi goal by cutting our GHG emissions according to climate science and as a Global Member of GCCA, by pledging for UNFCCC’s ‘Race to Zero Campaign’ to achieve Net Zero Carbon by 2050.
Clinker manufacturing is responsible for 80 per cent of the carbon emissions and supplementary cementitious materials reduce the clinker content in cement to a great extent without compromising the quality of the product. JK Cement’s green vision is to deliver a sustainable product to meet the stakeholder’s demands while taking several measures that can reduce CO2 emissions in the clinker manufacturing process. This can be achieved by using different types of alternative fuels, RDF/MSW, biomass fuels etc. and various industrial waste such as raw mix components like red mud, GCP dust, iron sludge, zinc slag etc.
Supplementary cementitious materials such as flyash, slag, waste gypsum and industrial waste are the crucial components of JK Cement’s business strategies for conservation of the mineral resources which enables us to produce sustainable construction materials in terms of low embodied carbon at a competitive cost. This has transformed our operations by setting up a benchmark for achieving the best sustainable business practices in the industries and producing Green Certified Cement.
Tell us about the impact of cement made with supplementary materials on the construction and allied industries.
As the construction sector is incessantly challenged by the growing societal demands for safer and cost-effective infrastructures, more and more environment-friendly products and processes must be developed and adopted into our industrial practice. Although supplementary cementitious materials are one of the most used construction materials worldwide, there are still some major concerns about their sustainability and durability.
Firstly, the production of concrete is releasing large volumes of carbon dioxide into the atmosphere, one of the greenhouse gases attributable to
climate change. Secondly, even though cementitious materials are very versatile and robust they may suffer from various deteriorative processes, leading to shortened service life, and consequently, intrusive or expensive costs for maintenance and repair.
To meet the expectations of consumers, demanding more durable, less labour and service intensive materials at a competitive price, numerous new composite materials and technologies have been developed over the last couple of decades including blended cements with Supplementary Cementitious Materials (SCM).
Some of the positive impacts are summarised as follows:
- The use of supplementary cementitious materials in construction not only improves the mechanical property of cement matrix but also reduces its impacts on the environment.
- Blended cement helps to reduce the damage to the concrete from alkali-silica reaction and provides higher resistance to chloride ingress thus reducing the risk of reinforcement corrosion.
- Mitigating sulphate phase formation, which takes place when sulphates found in seawater and some soils react with tricalcium aluminate in concrete.
- Some of the allied industries have started making limestone bricks, AAC blocks, hollow blocks, flyash bricks which are not only considered as green products but also reduce the cost of construction works.
How do you foresee the future of the global cement industry in terms of using alternative materials for cement manufacturing and running the race of decarbonisation?
The production of Ordinary Portland Cement (OPC) is continuously declining, with a simultaneous increase in the production of blended cement like PPC, PSC, and Composite Cement based on flyash and granulated blast furnace slag. SCM are increasingly used to minimise cement-related CO2 emissions and increase plant efficiency from an economic and environmental perspective.
At present, blended cements have a greater share (73 per cent) in comparison to ordinary portland cement (27 per cent). Other cement formulations such as Portland Limestone Cement (PLC) and Limestone Calcined Clay Cement (LC3) are also at different stages of development in India.
In recent years, globally and in India several research has been conducted for the development of environment-friendly and less CO2 emission cement i.e., Calcium Sulfo-Aluminate Cement, Reactive Belite Cement, Alkali Activated Cement etc., that is found to be more energy-saving, less carbon intensive and optimises waste-utilisation. Further studies were carried out on carbon capture storage and usage, zero emission mining, oxyfuel combustion in kiln etc. If these solutions become economically viable, they may contribute to a considerable reduction in CO2 output from the cement industry.
–Kanika Mathur

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.

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.

Harking on the ‘sabka vikas’ maxim, Union Budget 2025 presented several key industries, including infrastructure and urban development, with promising provisions, while endowing the middle class with reformative taxation. ICR brings you a special report.
Finance Minister Nirmala Sitharaman’s Union Budget 2025 outlined a multi-pronged approach to achieving ‘Viksit Bharat.’ Key themes included poverty eradication, quality education, and affordable healthcare. The budget focused on tax reforms, middle-class empowerment, and national economic growth. Special attention was given to the aspirations of GYAN (Garib, Yuva, Annadata, and Nari Shakti).
Union Budget 2025 also stressed the need to expedite the pending housing projects. Together with the impetus given to infrastructure and urban development, the budget bodes well for the cement sector. We reached out to key opinion leaders from the industry to understand their reaction to the budget.
Towards sustainable growth
Arun Shukla, President and Director, JK Lakshmi Cement, applauded the focus of Union Budget 2025 on expanding infrastructure through PPP models and streamlining trade and warehousing facilities, as this will create a conducive environment for cement demand, driving sustainable growth in the industry.
Elaborating further he said, “As we continue to build a stronger future for India, the 2025 Union Budget offers a clear path forward, focusing on sustainable growth, affordable housing and infrastructure development. The completion of 50,000 dwelling units in stressed housing projects and the Rs.1.5 lakh crore allocation for infrastructure will bring much-needed relief to middle-class families, helping them move closer to homeownership while fostering rapid urbanisation. We are optimistic about the Rs 10 lakh crore asset monetisation plan, which will infuse capital into new projects, sparking innovation across key sectors.”
A media release from Cement Manufacturers’ Association (CMA) said that the cement industry is poised to leverage the opportunities presented by Union Budget 2025 by ensuring steady and sustained supplies of cement to meet the nation’s growing domestic market and infrastructure demand coupled with sustainable and innovative technologies.
Lauding the budget for its comprehensive focus on holistic and inclusive development, Neeraj Akhoury, President, CMA, and Managing Director, Shree Cement, stated, “The Budget reinforces a transformative journey towards building a resilient economy for advancing India’s development goals. The various initiatives announced by the Government balance people’s aspirations with the future requirements for the country’s economic growth. The focus on increased investments on infrastructure across states amplifies opportunities and avenues for the growth of the cement sector. We appreciate the sustained core focus on infrastructure and reiterate our commitment to being partners in the nation’s progress.”
He opined that the increased spending on large scale housing and infrastructure projects will drive demand for construction materials allowing capacity expansion and promotion of innovation in sustainable practices. “We are certain that despite challenges these measures will support the cement Industry in achieving a consistent CAGR growth rate of more than 6 per cent of installed cement capacity in the present financial year. Policy reforms in Budget 2025-26 signal a reaffirmation of the Government’s intent to augment socio economic growth across core sectors,” he added.
Calling the budget a forward-looking roadmap, Parth Jindal, Vice President, CMA and Managing Director, JSW Cement, said, “It prioritises growth in key sectors such as infrastructure, manufacturing, and technology. The increased investment in technology will accelerate advancements in green cement solutions, driving both sustainability and innovation within the industry. Notable allocations, including Rs.20,000 crore to foster innovation and Rs.1.5 lakh crore in 50-year interest-free loans to states for capital expenditure on infrastructure development, are expected to significantly bolster growth in the core sectors, including cement sector.
He further added, “The budget’s focus on a three-year pipeline of projects under the public-private partnership (PPP) model will incentivise private sector investment and catalyse a transformation in the infrastructure landscape. The establishment of five National Centres of Excellence for skill development, as part of the ‘Make for India, Make for the World’ initiative, will ensure that India’s emerging workforce is well-equipped to meet the demands of a rapidly growing economy.”
Praising the Finance Minister’s efforts at prioritising sustained reforms in manufacturing, mining, power and skill development, Vivek Bhatia, MD and CEO, TKIL Industries, said, “These sectors will be key drivers of growth, infrastructure development, governance improvements and sustainable development for the country. We welcome the government’s move towards accelerating India’s manufacturing sector. Over the past decade, structural reforms have drawn global attention, and the announcement of a National Manufacturing Mission is a significant step in strengthening the Make in India initiative. This will drive clean-tech manufacturing, bolstering the ecosystem for solar cells, EV batteries, wind turbines and more.”
He added, “The `1.5 lakh crore allocation for 50-year interest-free loans is set to accelerate infrastructure development, unlocking new growth avenues for us. These strategic measures position India as a rising global manufacturing hub, seamlessly aligning with its green energy and economic ambitions. We applaud these initiatives and eagerly anticipate the forthcoming policy on critical mineral recovery, which will play a pivotal role in driving sustainable industrial growth.”
Raman Bhatia, MD, Servotech Renewable Power System, echoed the sentiments as he noted the provisions made for incentivising electricity distribution reforms. He said, “The practical approach of allowing additional borrowing for states contingent on these reforms is commendable. The inclusion of 35 additional capital goods for EV battery manufacturing is a significant boost to domestic lithium-ion battery production, a critical component for the EV sector. I particularly appreciate the emphasis on improving domestic value addition and building our ecosystem for these crucial technologies. The substantial allocation for private sector-driven R&D and innovation is another welcome move that will further accelerate progress.”
Constructing a sturdier future
Union Budget 2025 bodes well for the infrastructure and construction industries, too, which in turn directly impacts the growth of the cement sector. Emphasis on economic expansion, infrastructure growth, support for MSMEs and empowering the middle-class are several key factors that will create favourable grounds for increase in construction activities.
Lalit Parihar, Managing Director, Aaiji Group, said, “Raising the exemption limit will boost disposable income, enhancing housing affordability and driving real estate demand. Increased infrastructure spending and the Rs 1 lakh crore Urban Challenge Fund will transform cities into growth hubs, fostering redevelopment and strengthening water and sanitation systems. These measures aim to stimulate domestic consumption, address the economic slowdown, and create a business-friendly environment. Overall, the budget takes a decisive step toward urban transformation and sustainable economic growth.”
Speaking about the limitations of the budget, Narayan Saboo, Chairman, BigBloc Construction, pointed out, “The focus on consumption-driven growth, coupled with strategic spending, is expected to provide a much-needed push to the economy. Although we were little disappointed with no major tax reliefs for MSMEs. Overall, it is a steady and practical budget aimed at sustaining momentum without major surprises. The budget outlines a long-term path for fiscal consolidation while delivering a significant boost to individual taxpayers by raising the exemption limit. This move is expected to stimulate domestic consumption, addressing the ongoing economic slowdown.”
“The government has not clarified its plans for increased infrastructure spending and other growth-oriented expenditures. However, there is no mention of last year’s CAPEX shortfall, which is a notable omission. While the budget does not introduce any groundbreaking measures, it provides a stable framework to support MSMEs and economic activity,” he added.
While Rakesh Reddy, Director, Aparna Constructions, highlighted the `1 lakh crore Urban Challenge Fund and the Rs.1.5 lakh crore interest-free loan to states for infrastructure development in his reaction to the budget, he also pointed out that several key industry expectations for the real estate sector remain unaddressed. “Granting industry status to real estate, streamlining approval processes, and enhancing liquidity support for developers were essential priorities which would have gone a long way in accelerating real estate growth,” he clarified.
“We welcome the Rs.1 lakh crore Urban Challenge Fund, which will spur housing and private sector participation. The Rs.15,000 crore SWAMIH Fund-2 will help complete 40,000 stalled units, boosting consumer confidence. Expanding UDAN’s connectivity to 120 destinations will drive tier II market growth. With policy continuity and economic expansion, this budget reinforces real estate as a key pillar of India’s $5 trillion economy journey,” stated Ashish Puravankara, Managing Director, Puravankara.
Prashant Sharma, President, NAREDCO Maharashtra, said, “The Union Budget 2025-26 has emphasised economic growth and inclusive development, but the absence of specific measures for the real estate sector is a major disappointment. While the Rs.1 lakh crore Urban Challenge Fund is a step in the right direction to transform cities into growth hubs, the sector was expecting direct incentives such as industry status, single-window clearances and increased tax benefits for homebuyers.”
Ravleen Sethi, Director, CareEdge Ratings, in her report stated that the ongoing consolidation in India’s cement sector is driving competition, with companies shifting focus to profitability and expansion. While the Union Budget 2025 provides some support through infrastructure spending and housing initiatives, the lower-than-expected capex allocation raises concerns. The government aims to boost private sector investment in infrastructure, but its pace of scaling up remains uncertain. Cement companies must prioritise operational efficiency and innovation to manage near-term challenges. A long-term growth outlook remains positive, but adaptability will be key in leveraging both public and private sector opportunities.
The Union Budget 2025 lays a solid foundation for economic growth, infrastructure expansion and middle-class empowerment. While it introduces key reforms and allocations to drive sustainable development, some industry expectations remain unmet. The emphasis on urban transformation, manufacturing, and green energy signals a progressive vision for Viksit Bharat. Moving forward, effective implementation will be crucial in realising the budget’s ambitious goals.

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