India Infrastructure growth rate jumps to 6.7% in 3Q06 | INRnews
The six core infrastructure industries namely crude petroleum, petroleum refinery products, coal, electricity, cement and steel contributed 5.5% in 3Q06, less than the 5.8% growth rate in the same period last year.
Cement prices have shown an average increase of 27% y-o-y. Encouraged by demand from the real estate sector in the metros, cement manufacturers have decided to raise prices by INR 3–5 per bag starting this current month. This will result in increased construction costs across all the real estate sectors wherein cement is the main ingredient. Speculating on an increased demand situation, majority of the companies in India are increasing their capacity of cement production. At present, the total manufacturing capacity of the 24 major cement companies in India is about 54.4 tonnes annually. The expected incremental increases in 07, 2008 and 2009 are 12.8, 22.4 and 16.2 tonnes, respectively. Hence, in the medium term, we can expect that there would be stabilisation in the cement prices with the increased supply.
This information was released by Jones Lang LaSalle, a leading real estate services and money management firms.
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By INRnews Correspondent
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