India's cement sector grows in FY26 due to strong infrastructure spending and rising demand, despite weak real estate.

India's cement sector is projected to grow in FY26, driven by strong demand, rising prices, and increased government infrastructure spending, despite weak real estate activity. Cement prices recovered in late 2025 after a correction, and demand remains resilient, especially in the fourth quarter, supported by a 15% year-on-year rise in state government capex and overall government capex growth of about 15% for April–December 2025. Although central government and CPSE capex declined sharply in January 2026, higher planned capex in the FY27 budget is expected to sustain momentum, with industry volumes forecast to grow in the mid-single digits.