India is the second largest cement producer in the world. However, it is way behind China, where the capacity is more than five times larger. Cement is a low value and high volume commodity and is mainly concentrated near limestone deposits available in few States. It has a high rate of excise duty and accounts for 5% of total excise duty collection. During the Tenth Plan, cement production grew at a healthy CAGR of 8.67% while the installed capacity showed modest CAGR of 3.69%. Exports too showed an upward trend.
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