On 01 February 2022, the Finance Minister of India, Smt Nirmala Sitharaman presented the eagerly anticipated Union Budget 2022. It comes at a time when the economy is still recovering from the devastating impact of the COVID-19 restrictions that had been imposed in the interest of the public, and as such, it was expected to make certain provisions for various industries in the country that would allow them to recover. Let’s take a look at some provisions that are expected to make an impact on the cement industry in India.
India is the second-largest producer of cement on a global scale with more than 7 per cent of the global installed capacity. Cement production reached 329 million tonnes (MT) in FY20 and is projected to reach 381 MT by FY22, driven by rural housing demand and the government’s strong focus on infrastructure development.[1]
Vimal Kejriwal, MD & CEO, KEC International Ltd., says, “I welcome the forward-looking, Capex-led Budget 2022, with a sharp 35 per cent increase in outlay. A strong focus on improving the safety of Indian Railways, faster implementation of metro rail systems, infrastructure status for data centers, along with an emphasis on PM GatiShakti with significant allocation towards Jal Jeevan Mission, Affordable Housing, BharatNet, and building 100 Cargo Terminals for multimodal logistics facilities augur well for KEC International Ltd. and our well-diversified businesses.”
It should be noted that India is still a developing country with tremendous improvements in infrastructure planned as of now. Infrastructural developments require cement as one of the primary raw materials, along with steel, coal, and other allied industries; and any expenditure or incentives for expenditure from the government in the infrastructural development sector is a very welcome sign which indicates a significant amount of growth in the cement industry, in addition to growth in these allied sectors such as coal, steel, aluminium, and mining. From this perspective, the Union Budget 2022 has been a blessing as it has made provisions for the following expenditures in infrastructural development [2]:
Government Scheme
Budget Estimates 2022-2023(INR crore)
National Highways Authority of India
1,34,015
Road Works
64,568
PM Awas Yojana
48,000
Metro Projects
19,130
PM Gram Sadak Yojana
18,000
Urban Rejuvenation Mission: AMRUT and Smart Cities Mission
14,100
Compensation to Service Providers for creation and augmentation of telecom infrastructure
9,000
National Investment and Infrastructure Fund (NIIF)
5,003
National Capital Region TransportCorporation
4,710
Member of Parliament Local Area Development Scheme (MPLAD)
3,965
Police Infrastructure
3,919
Border Infrastructure and Management
2,745
National Industrial Corridor Development and Implementation Trust (NICDIT)
1,500
North East Special Infrastructure Development Scheme (NESIDS)
1,419
Infrastructure facilities for Judiciary
858
Infrastructure Development and Capacity Building
588
Border Area Development Programme
566
Other Programmes including Railway Infrastructure
96,314
Total
4,28,400
As can be seen from the above table, a massive Rs 4,28,400 crore is expected to be spent for the purpose of infrastructural development in the upcoming financial year. A majority of these developments are concerning roads and transportation facilities in the country, however, schemes like the PM Awas Yojana, AMRUT[3], and Smart Cities Mission also incentivise residential infrastructural developments and give a boost to the real estate market. With the introduction of programmes such as the PM Gati Shakti, which aims to bring together Ministries related to transport (roads, railways, etc), we can expect a much more efficient planning system that may further increase the demand in the industries related to infrastructure, leading to even more growth.
One essential part of the Indian economy is the railway network. The railways present a special income and expenditure profile in the budget[4]. In 2022-23, the total expenditure on the Indian Railways is expected to be Rs 4,73,440 crore. While a lot of this amount goes towards the operating expenses of the railways, a significant percentage of it also goes towards infrastructural development which is undoubtedly a blessing for the cement industry.
Driving India ahead
Budget 2022 also makes provisions for improving the ease of doing business in India. Kejriwal further adds, “Initiatives such as the use of Surety Bonds as a substitute for bank guarantee, a cap on Surcharge of AOPs consortiums at 15 per cent as against 37 per cent earlier and an end-to-end online e-Bill System to enhance transparency are steps in the right direction for EPC contractors.”
While expenditure in the infrastructure, transport, and real estate sector from the government is sure to cause these sectors to grow, expenditure from individuals is also a key driving factor in the real estate sector. Individual customers would have greatly appreciated some form of tax benefits on home loans, which could have led to growth in the residential real estate sector, which also benefits the cement industry in addition to industries such as steel, home electronics and appliances, and many more. The middle class has also not received any reduction in the income tax, meaning that these individuals will be hesitant to make large investments such as real estate at the moment as well.
In conclusion, the new budget seems to be very beneficial for the cement industry, along with various other allied industries which play a role in construction and infrastructure. Budget 2022 promises tremendous developments in the public infrastructure and transportation in India, and development in these sectors is expected to lead to further development throughout the economy in the foreseeable future. Additionally, ease of doing business is also expected to improve with provisions such as the end-to-end online e-bill system. However, it is not only the government and large companies that form the market but also the individuals, and it would be very helpful for the industry if the government makes provisions for them.
The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.
TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.
Cortec® Corporation has been recognised for its strong safety performance, receiving its sixth Governor’s Workplace Safety Award for its outstanding performance in 2025. As a Silver Achievement recipient, the company continues to maintain safety metrics well above national industry averages, an impressive accomplishment for a chemical manufacturing organisation. This achievement reflects Cortec’s proactive approach to workplace safety, focused on early hazard detection and employee involvement. The company will be formally recognised at the Minnesota Safety and Health Conference in May, highlighting how industrial companies are effectively strengthening workplace safety standards.
