Chennai: The key announcements made in the Union Budget 2026–27 are expected to support steady growth in the cement sector, according to industry experts and market analysts. They said the government’s focus on higher spending for infrastructure and development projects will increase the demand for cement in the coming years.
The Budget has proposed a 9% rise in capital expenditure for the financial year 2025–26, taking it to ₹12.2 trillion. Effective capital expenditure, which also includes grants given to states and other agencies, will increase by 11% to ₹17.1 trillion. This higher spending shows that the government plans to continue investing heavily in roads, railways, housing, and other large infrastructure projects.
Experts believe that such investments will directly benefit the cement industry because cement is one of the main materials used in construction. With more highways, metro rail projects, bridges, airports, and affordable housing schemes being built, the demand for cement is likely to grow steadily.
Industry representatives said this increased spending will likely sustain mid-to-high single-digit growth in cement demand over the next few years. They also added that stable government policies and faster execution of projects will help companies plan their production and investments better.
Analysts pointed out that rural development, urban expansion, and public infrastructure projects will create consistent demand across both cities and smaller towns. Private sector investments in real estate and commercial construction may also rise alongside government spending, further boosting the sector.
Overall, the cement industry sees the Union Budget as positive and growth-oriented. With strong infrastructure push and continuous project implementation, companies expect better sales, improved capacity utilisation, and long-term expansion opportunities.