New Delhi, Aug. 23 -- Rural and urban housing, infrastructure, and commercial projects are driving cement demand, expected to grow at a 7-8 per cent CAGR, or 1.0-1.2 times real GDP growth, over the medium term.

Capacity additions in the Indian cement sector are likely to pick up across regions starting in the last quarter of the Financial Year (FY) 2025, according to a report by UBS.

Region-wise, demand in the eastern market fell sharply due to early rains, though prices remained steady at Rs 353 per bag. In the southern region, prices increased by Rs 10 per bag despite the monsoon.

The report noted that prices will improve in FY26 and FY27, after falling sharply in FY25.

In the medium to long term, the report added that the prices wi...