Question

Describe the growth of the cement industry in India.

Answer 1

• Initial Stage (1904–1930s):
  • The first attempt to manufacture cement in India was made in 1904 at Chennai, but it failed.
  • The first successful factory was set up in 1912–13 at Porbandar (Gujarat).
  • Soon, factories were established at Katni (Madhya Pradesh) and Lakheri (Rajasthan).
  • World War I (1914–18) boosted demand for cement in India.
• Protective Tariff and Expansion (1924–1947):
  • In 1924, the Government granted tariff protection to the cement industry, helping it grow.
  • By 1934, several companies merged to form the Associated Cement Companies (ACC).
  • At Independence (1947), India had 18 factories with a production capacity of 21.15 lakh tonnes.
• Post-Independence Expansion (1950s–1980s):
  • During the First Five-Year Plan, emphasis on building infrastructure (dams, factories, housing) increased demand.
  • Production rose from 2.7 million tonnes (1950-51) to about 18 million tonnes by 1980-81.
  • The industry remained under government control for pricing and distribution, which restricted rapid growth.
• Liberalisation and Modernisation (1980s onwards):
  • In 1982, the government introduced a partial decontrol policy, giving producers more freedom.
  • With liberalisation in 1991, the cement industry was fully decontrolled, attracting private and foreign investment.
  • Production rose sharply with modernisation, new plants, and improved technology.
• Current Status:
  • India is the second largest producer of cement in the world after China.
  • Annual production rose to about 215 million tonnes in 2015-16 and has continued to grow.
  • The industry now plays a key role in supporting infrastructure, housing, and industrial development.