A recent research report by ratings firm ICRA has said India’s cement demand is expected to rise 20 per cent in the current fiscal. A major driver of this demand rebound will be the government’s affordable housing programme. This, in turn, will improve the sector’s capacity utilisation to 64 per cent, up sharply from 56 per cent last year.
“Such growth shall be supported by rural demand, including affordable housing and recovery in the infrastructural sector. Rural offtake is expected to get supported by positive farm sentiments with timely sowing of Rabi crops and favourable reservoir and groundwater levels, which are likely to result in higher Rabi yields. The traction in the PMAY-G is also predicted to continue,” said a report in www.99acres.com, a leading Indian real estate website.
At a time when demand could begin to falter once again, this boost in consumption across a host of important sectors could well be the difference between a year of economic recovery and another year lost to the Covid-19 virus.