The Union Budget 2025 presents a measured approach to infrastructure spending, with the Indian government allocating Rs.11.21 trillion ($129.54 billion) for FY26—an increase of less than 1 per cent over the previous year. This subdued hike, especially compared to the robust increments in FY24 and FY25, has left investors underwhelmed. The cement sector, a direct beneficiary of capital expenditure, now faces tempered expectations despite its crucial role in infrastructure and housing projects.

Adding to the concerns, cement production growth plummeted to 4 per cent in December 2024, a stark contrast to the 13.5 per cent recorded in the previous month. This downturn reflects broader sectoral challenges, including fluctuating demand and cost pressures. However, industry players are pinning hopes on the execution of large-scale housing and infrastructure projects to drive demand in the coming months.

A key silver lining in the budget is the Rs.1.5 trillion allocation in 50-year interest-free loans to states for capital expenditure. This measure is expected to provide a much-needed stimulus for infrastructure development, potentially benefiting cement manufacturers in the medium to long term.

As the sector navigates these dynamics, the Indian Cement Review Awards remain a beacon of industry excellence. The Jury convened in Mumbai on January 22 to deliberate and select the most deserving winners for the 8th edition of these prestigious awards. The winners will be honoured in a grand ceremony on March 6, 2025, in Hyderabad, coinciding with Cement Expo Forum 2025 (March 5-6, 2025).

With the industry at a crossroads, the upcoming Cement Expo Forum 2025 will serve as a critical platform for thought leaders, policymakers, and industry stakeholders to chart the path forward. Scan the QR code below to be part of the conversation shaping the future of cement and infrastructure.