As India’s cement industry reports yet another quarter of strong earnings on the back of improved realisations, stable prices and steady demand, the sector now stands at a pivotal crossroads. The optimism around growth is undeniable with improvement in capacity utilisation, continued infrastructure momentum and rebounded profitability. Yet, amid this performance surge, a new and defining chapter in India’s decarbonisation journey has begun.
On October 8, 2025, the Union Government notified the Greenhouse Gases Emission Intensity Target Rules, 2025, marking the first legally binding emission-intensity limits for heavy industries. Of the 282 units identified across cement, aluminium, pulp and paper, and chlor-alkali, a staggering 186 belong to the cement sector. This is an unmistakable signal that the industry will anchor India’s next phase of industrial climate action.
The move compels cement manufacturers to reduce their CO2 emissions per tonne of output against a 2023–24 baseline, in alignment with India’s ‘Net Zero by 2070’ vision. While many players have already invested in low-clinker technologies, alternative fuel, and renewable energy, this regulation adds legal teeth to what was previously a voluntary or market-driven transition.
It also introduces a new dimension to competitiveness. With the EU’s Carbon Border Adjustment Mechanism (CBAM) looming large, Indian producers must now quantify, manage and mitigate carbon costs more rigorously or risk losing ground in global trade.
The coming quarters will therefore test the sector’s ability to balance profitability with sustainability, growth with green responsibility. Can India’s cement producers turn compliance into competitive advantage? Can the sector lead the way in building not just infrastructure, but also a lower-carbon future? The answers, as always, will lie in how swiftly the industry moves from chasing volumes to mastering value.