India is the world’s 2nd largest cement market, both in production and consumption, after China. India’s overall cement production capacity was nearly 502 million tonnes as of FY19 and consumption has increased by 5 per cent in the FY19 due to the high growth in housing segment and higher infrastructure spending. As of June 2019, cement production capacity stood at 28.3 million tonnes per annum (MTPA). Capacity addition of 20 million tonnes per annum (MTPA) is expected in FY19- FY21. Cement production is reached to 337.32 million tonnes in 2018-19 and stood at 247.43 million tonnes between April-December 2019. The cement production capacity is estimated to touch 550 MT by 2020. Of the total capacity, 98 per cent lies with the private sector and the rest with the public sector. India’s exports of cement, clinker and asbestos cement increased at CAGR of 10.54 per cent between FY12-FY20 (April-July 2019) to reach US$ 177.93 million. During the same period imports of cement, clinker and asbestos cement increased at a CAGR of 7.99 per cent to US$ 57.61 million in FY20. To enhance the source of capital for infrastructure financing, Credit Guarantee Enhancement Corporation for which regulations have been notified by the RBI, will be set up in 2019-20. Foreign Direct Investment (FDI) inflow in industry related to manufacturing of cement & gypsum products reached US$ 5.28 billion between April 2000 and September 2019. The Government of India is strongly focused on infrastructure development to boost economic growth and is aiming for 100 smart cities. The government also intends to expand the capacity of the railways and the facilities for handling and storage to ease the transportation of cement and reduce transportation costs. These measures would lead to increased construction activity thereby boosting cement demand