New Delhi, February 03: 2026: The Cement Manufacturers’ Association (CMA) has welcomed the Union Budget 2026–27, stating that its strong focus on infrastructure-led growth is expected to provide sustained demand visibility for the Indian cement sector.
According to CMA, the Budget reinforces India’s growth trajectory through continued fiscal discipline, moderate inflation, and higher public investment in infrastructure. Public capital expenditure has been increased from ₹11.2 lakh crore in FY 2025–26 to ₹12.2 lakh crore in FY 2026–27, positioning infrastructure as a key driver of economic expansion and offering long-term growth prospects for cement and other construction-linked industries.
The Budget’s emphasis on urban development, particularly in Tier 2 and Tier 3 cities with populations above five lakh, along with the creation of City Economic Regions (CERs), is expected to accelerate construction activity across housing, transport, and urban services. Each CER is proposed to receive ₹5,000 crore over five years, which CMA believes will support broad-based cement consumption across regions.
Measures aimed at improving logistics and connectivity were highlighted as particularly relevant for the cement industry. Announcements related to new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next 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.
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. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026–27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation… The Union Budget 2026–27 reflects the Government’s focus on infrastructure-led development emerging as a structural pillar of India’s growth strategy.”
He also highlighted the ₹20,000 crore outlay for Carbon Capture, Utilisation and Storage (CCUS), noting that it could significantly support the decarbonisation of emissions-intensive industries such as cement. He added that this support aligns with the cement industry’s commitment to India’s Net Zero target by 2070.
Raghavpat Singhania, Vice President, CMA, said, “The Government’s sustained infrastructure push supports employment, regional development and stronger local supply chains… 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 stand to strengthen the growth of the Cement sector.”
He further noted that investments in tourism, heritage circuits, regional connectivity, and healthcare infrastructure are expected to broaden construction activity across the country, while the projected fiscal deficit of 4.3% of GDP for FY 2026–27 reinforces macroeconomic stability and investor confidence.
CMA reiterated that the cement industry remains committed to working with the government to support resilient, sustainable, and inclusive infrastructure development as India progresses towards its long-term development goals.
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