Chennai : The cement industry saw the resurgence of demand
as there were signs of COVID easing and the demand also picking up, India
Cements Vice-Chairman and Managing Director N.Srinivasan said today.
At the same time, he said there is an uncertainty over the possibility
of a third wave. Therefore, one has to be cautiously optimistic about
the immediate future given there are predictions of a third wave.
Speaking at the 75th Annual General Meeting of India Cements, conducted
through video conferencing, he said cement consumption is expected to go
up with the central Government increasing the investment on infrastructure
Mr. Srinivasan said the Budget for 2021-22 did not have a fixation on
fiscal deficit. Rather, the fixation is on growth and many schemes and
infrastructure projects have been announced including for the first time
large infrastructure projects in the South.
The expansionary Budget has envisaged a 34% increase in capital expenditure
and if the promised capex on infrastructure, roads, metro rails including in the
South takes place, there is scope for higher demand for cement.
According to latest official estimates, GDP growth rate in the first quarter
(April- June) of 2021-22 surged by 20.1 per cent compared to a contraction
of 24.4 per cent in the same quarter a year ago.
This indicated that Indian economy is in recovery mode with improving performance
across various high frequency industrial and service sector indicators. The recovery
is said to have deepened with further easing of covid related curbs and inoculation
RBI and global agencies have projected a rebound with a strong GDP growth of 9.5%
in 2021-22, Mr Srinivasan said.
He said the new Government in Tamil Nadu has started giving push to housing and
infrastructure development. Andhra Pradesh and Telangana Governments are also
implementing irrigation, road building and other infrastructure projects and new
All these developments give room for cautious optimism for cement demand in the
coming months, he said, adding, as the demand picks up, capacity utilisation will