Impact of Globalisation on the Indian Cement Industry

Topics: Supply and demand, Economics, Cement Pages: 24 (7384 words) Published: January 27, 2011

|S. no |Topic | |1 |Abstract | |2 |Introduction | |3 |Structure of the Indian Cement Industry | |4 |Liberalization | |5 |Phases of Growth | |6 |Performance of the Industry | |7 |Current Scenario | |8 |Competitiveness of the firms | |9 |Future of the Cement Industry | |10 |Conclusion | |11 |References |


The paper evaluates the effects of deregulation on the performance and structure of the Indian Cement Industry. The implementation of the deregulation process is complex and varied. Therefore the paper mainly focuses on the impact of liberalisation on the growth and the structure of the cement industry, where structure is primarily being captured by concentration. In this paper, we contribute to the discussion on productivity growth and the role of technological change within the context of global environmental change.

The performance of the industry, under different policy regimes, truly establishes that decontrol of the industry and liberalization of the economy has led to remarkable improvement in the indicators such as installed capacity, capacity utilization, per capita consumption and exports. Cement is a basic core product, essential for building our nation and its growth is intrinsically linked to the overall growth of the economy and more importantly to the growth of the infrastructure sector.

The cement industry presents one of the most energy-intensive sectors within the Indian economy and is therefore of particular interest in the context of both local and global environmental discussions. A historical examination of productivity growth in India’s industries embedded into a broader analysis of structural composition and policy changes will help identify potential future development strategies that lead towards a more sustainable development path. Historical estimates vary from indicating an improvement to a decline in the sector’s productivity. The variation depends mainly on the time period considered, the source of data, the type of indices and econometric specifications used for reporting productivity growth.


Cement is an essential component of infrastructure development and most important input of construction industry, particularly in the government’s infrastructure and housing programs, which are necessary for the country’s socioeconomic growth and development. It is also the second most consumed material on the planet (WBCSD 2002). It is consented to be a core sector accounting for approximately 1.3% of GDP and employing over 0.14 million people. Also the industry is a significant contributor to the revenue collected by both the central and state governments through excise and sales taxes.

The cement industry has continued its growth trajectory over the past ten years. Domestic cement demand growth has surpassed the economic growth rate for the past three years. The key drivers for cement demand are real estate sector, infrastructure and industry expansion projects. Among these real estate sector is the key driver of cement demand. The demand for cement is closely related to the growth in the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Impact of Globalisation on Indian Textile Industry
  • An Assignment on Impact of Globalisation on Automobile Industry Essay
  • Analysis of Indian Cement Industry Essay
  • Impact of Globalisation Essay
  • Cement Industry Essay
  • Essay on Cement Industry
  • Essay on Impact of Globalisation

Become a StudyMode Member

Sign Up - It's Free