Union Budget reinforces infrastructure-led growth: CMA

Vijayawada: The Cement Manufacturers’ Association (CMA) on Tuesday welcomed the Union Budget 2026–27, stating that it strongly reinforces infrastructure-led growth while balancing inclusivity and economic stability in line with the vision of Prime Minister Narendra Modi for a Viksit Bharat by 2047 and Atmanirbharta.

The Budget highlights India’s steady economic progress over the last 12 years through fiscal discipline, sustained growth and moderate inflation, providing strong demand visibility for infrastructure-linked sectors such as cement. Public capital expenditure has been increased from Rs 11.2 lakh crore in 2025–26 to Rs 12.2 lakh crore in 2026–27, reaffirming infrastructure as a key driver of economic expansion and offering long-term growth prospects for the cement industry.

The CMA said that the focus on Tier-2 and Tier-3 cities and the creation of city economic regions (CERs), with an allocation of Rs 5,000 crore per CER over five years, is expected to accelerate construction across housing, transport and urban services, thereby supporting broad-based cement consumption.

The Budget’s logistics and connectivity initiatives—including new dedicated freight corridors, expansion of National Waterways, promotion of coastal cargo, and development of ship repair ecosystems—are expected to improve freight efficiency, reduce logistics costs and enhance the sector’s carbon footprint. The announcement of seven high-speed rail corridors is also likely to spur regional development and construction demand.

CMA president Parth Jindal said the Budget’s emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by wide-ranging reforms, would strengthen the investment climate for capital-intensive sectors like cement.

He also highlighted the Rs 20,000 crore allocation for Carbon Capture, Utilisation and Storage (CCUS) as a transformative step for decarbonisation in emissions-intensive industries.

CMA Vice-president Dr Raghavpat Singhania said the sustained infrastructure push would support employment, regional development and inclusive growth, while reaffirming the industry’s commitment to partnering with the government in building resilient and sustainable infrastructure for long-term national development.