The Cement Manufacturers’ Association (CMA) has welcomed the Union Budget 2026–27, noting that it strongly reinforces India’s infrastructure-led growth agenda while balancing inclusivity and long-term national aspirations under the Hon’ble Prime Minister Shri Narendra Modi ji’s vision of Viksit Bharat by 2047 and Atmanirbharta.
The Budget reflects India’s stable economic trajectory over the past 12 years, underpinned by fiscal discipline, sustained growth and controlled inflation. It provides strong demand visibility for infrastructure-linked sectors such as cement, which remain central to the country’s development ambitions.
A key highlight is the Government’s continued emphasis on infrastructure, with public capital expenditure rising from ₹11.2 lakh crore in FY2025–26 to ₹12.2 lakh crore in FY2026–27. This reinforces infrastructure as a core driver of economic growth and offers long-term visibility for the Indian cement industry. The focus on Tier 2 and Tier 3 cities with populations above five lakh, along with the creation of City Economic Regions (CERs) supported by an allocation of ₹5,000 crore per CER over five years, is expected to accelerate construction activity across housing, transport and urban services, thereby supporting broad-based cement demand.
Logistics and connectivity announcements in the Budget are particularly significant for the cement sector. Measures such as new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the Coastal Cargo Promotion Scheme aimed at increasing the modal share of waterways and coastal shipping from 6% to 12% by 2047, and the development of ship repair ecosystems are expected to enhance multimodal freight efficiency, lower logistics costs and improve the sector’s carbon footprint. The announcement of seven high-speed rail corridors as growth corridors is also likely to stimulate regional development and construction demand.
Commenting on the Budget, Mr Parth Jindal, President, Cement Manufacturers’ Association, said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. CMA appreciates the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States.
These reforms, along with the Budget’s focus on youth power and strengthening domestic manufacturing capacity under Atmanirbharta, will significantly improve the investment environment for capital-intensive sectors such as cement. The Union Budget 2026–27 reaffirms infrastructure-led development as a structural pillar of India’s growth strategy.”
The Budget’s allocation of ₹20,000 crore towards Carbon Capture, Utilisation and Storage (CCUS) across sectors, including cement, marks a pivotal shift in India’s decarbonisation pathway. CCUS is a critical enabler for large-scale emissions reduction in energy-intensive industries such as cement, directly addressing the sector’s technology and cost challenges. The cement industry, aligned with India’s Net Zero target by 2070, views this support as essential for scaling up low-carbon technologies while continuing to meet the nation’s infrastructure requirements.
Dr Raghavpat Singhania, Vice President, CMA, added, “The Government’s sustained infrastructure push supports employment generation, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, creating livelihoods in construction, logistics and allied sectors.
The increase in public capex to ₹12.2 lakh crore, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions will further strengthen growth prospects for the cement sector. We also welcome the Budget’s emphasis on tourism, cultural and social infrastructure, which will broaden construction activity across regions.”
Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity under the Purvodaya initiative and in the North-Eastern states, as well as the strengthening of emergency and trauma care infrastructure in district hospitals, further reinforce the cement sector’s role in enabling inclusive and balanced growth.
CMA also welcomed the Government’s continued commitment to fiscal discipline, with the fiscal deficit projected at 4.3% of GDP for FY2026–27, supporting macroeconomic stability and investor confidence. As India progresses towards Viksit Bharat 2047, the cement industry reaffirmed its commitment to partnering with the Government to build resilient, sustainable and inclusive infrastructure for long-term national development.
