New cement projects to support India's infrastructure plans

Following the decade low GDP growth registered by India in FY 2012 - 2013, the government is now aggressively pursuing measures to regain the economy's brisk growth rate from 2005 to 2010, which stood at a 8% CAGR value.

The estimated 2012 GDP growth of only 4% was primarily attributed to the country's widening account deficit, which consequently diverted foreign investments to more attractive economies in Asia.  The government's high expenditure contributed to the account deficit and further led to the slowdown in infrastructure growth.

To put India back on track, the government implemented aggressive reforms in fiscal policy that included substantial reductions in subsidies to fuel, fertilizer, and food.  Along with fiscal reforms, the government's 12^th Five-Year Plan (2012-2017) includes a US$1 trillion infrastructure budget targeted to attract foreign investments and stimulate consumer spending.

Read the rest of the feature article in India Cement and Construction Materials issue 13.