India exports: Growing or fading fast?

The India cement export market has shrunk in recent years, declining from a peak of 10 million tons to around 4.6 million tons as domestic demand has barreled ahead. The depreciation of the rupee and a lull in domestic demand has a few manufacturers eyeing export opportunities more seriously, but will the potential obstacles and fickle demand from importing nations prove to challenging for others to follow suit?

The Indian cement industry has come a long way with regard to exporting. In FY 1989-1990, the industry was exporting only 0.16 million tons, but by FY 2004-2005 the 10 million tons threshold had been crossed. That level appears to also have been the peak as manufacturers have struggled to keep up with domestic demand in India, which has been easier to capture. In the years that have followed, there has been a persistent downward trend in the export of cement and clinker. The question on the minds of many is: Is the trend reversible?

Read the rest of the article in the India Cement & Construction Materials issue 6.