Demand and Supply

Cement production has registered an growth of 13.5% in 2005-06 compared to 3.6% in 2004-05 and is the largest input into the construction industry. India is the second largest producer of cement in the world behind China (1.06 billion tonnes).  In 2005-06, India produced over 130 million tonnes of cement.  The key drivers for cement industry impressive growth are the booming housing and real estate sector and greater demand in infrastructure developments. In 2012, India will need over 360 million tonnes of cement for their massive construction and infrastructure projects, predicted the AssoCham Paper.

Steel:
India currently occupies 7th position in the list of global producers of crude steel.  India's steel production during fiscal 2006-07 grew 10.1 per cent at 44.3 MT as against 40.23 MT in the corresponding period of previous fiscal.  With increased focus on infrastructure, the domestic consumption of finished (carbon) steel is rising.  In 2005-06, domestic consumption of steel stood at 22 MT as compared to 20 MT in 2004-05. Steel industry can achieve a target of 130 MT by 2012 provided MoUs signed by various state governments come through.