The Cement Manufacturers’ Association (CMA) on Saturday welcomed the Union Budget 2026–27, stating that it reinforces India’s growth ambitions while balancing inclusivity and long-term development in line with Prime Minister Narendra Modi’s vision of Viksit Bharat by 2047 and Atmanirbharta. The Association said the Budget reflects India’s stable economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and controlled inflation. It noted that the government’s continued focus on infrastructure-led development offers strong demand visibility for infrastructure-linked sectors, including cement.
A key highlight for the industry is the sharp increase in public capital expenditure from ₹11.2 lakh crore in FY 2025–26 to ₹12.2 lakh crore in FY 2026–27. CMA said this reinforces infrastructure as a core driver of economic growth and improves long-term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above five lakh, along with the creation of City Economic Regions (CERs) with an allocation of ₹5,000 crore per CER over five years, is expected to accelerate construction across housing, transport and urban services.
The Budget’s focus on logistics and connectivity was also welcomed by the industry. Announcements such as new dedicated freight corridors, the operationalisation of 20 additional National Waterways over five years, the Coastal Cargo Promotion Scheme, and the development of ship repair ecosystems are expected to improve multimodal freight efficiency, lower logistics costs and reduce the sector’s carbon footprint. The proposed seven high-speed rail corridors are also expected to stimulate regional development and construction demand.
Commenting on the Budget, CMA President Parth Jindal said the three kartavya outlined in the Budget provide a clear roadmap for economic momentum, capacity building and inclusive progress. He highlighted over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with states as critical enablers for manufacturing competitiveness and investment, particularly for capital-intensive sectors like cement. Jindal also welcomed the ₹20,000 crore allocation for Carbon Capture, Utilisation and Storage (CCUS), calling it a game-changer for emissions-intensive industries such as cement.
He said the support would enable large-scale decarbonisation while helping the sector align with India’s Net Zero target by 2070. CMA Vice President Dr Raghavpat Singhania said the government’s sustained infrastructure push would support employment, regional development and stronger local supply chains. He noted that cement manufacturing clusters serve as economic anchors, generating livelihoods across construction, logistics and allied sectors.
Singhania also welcomed the Budget’s focus on tourism, cultural and social infrastructure, regional connectivity in Purvodaya and the North-East, and investments in emergency and trauma care infrastructure, all of which are expected to broaden construction activity. He added that the estimated fiscal deficit of 4.3% of GDP for FY 2026–27 reinforces macroeconomic stability and investor confidence.
The budget reinforces infrastructure-led development and increases public capital expenditure, providing strong demand visibility for the cement sector. It also focuses on urban development and logistics improvements.
The sharp increase in public capital expenditure from ₹11.2 lakh crore to ₹12.2 lakh crore reinforces infrastructure as a key economic driver and improves long-term demand visibility for the cement sector.
The emphasis on cities with populations over five lakh and the creation of City Economic Regions are expected to accelerate construction in housing, transport, and urban services.
Announcements like new freight corridors, operationalizing waterways, and the Coastal Cargo Promotion Scheme are expected to improve freight efficiency and lower logistics costs.
This allocation is a game-changer for emissions-intensive industries like cement, enabling large-scale decarbonisation and alignment with India's Net Zero targets.
