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The government of India recently released the Economic Survey 2024-25 which highlights India's economic performance, covering real estate, insolvency resolutions, governance reforms, and the cement industry. RERA has registered 1.38 lakh real estate projects and resolved 1.38 lakh complaints. PMAY-U has completed 89 lakh houses, with PMAY-G extending rural housing to 2029. 1,068 resolution plans under IBC recovered INR 3.6 lakh crore, aiding financial stability. Governance reformscontinue with tax simplifications and regulatory easing. India's cement industry, producing 427 million tonnes in FY24, is set to benefit from infrastructure growth but lags in per capita consumption. GDP growth at 5.4% missed RBI's 7% target, prompting the need for economic recalibration to sustain momentum.
The Finance Minister recently presented the Economic Survey 2024-25 in Parliament, offering an official evaluation of the country's economic performance for the ongoing financial year. The survey, prepared by the Economic Division of the Department of Economic Affairs under the guidance of the Chief Economic Adviser, provides insights into key sectors, including real estate, insolvency resolutions, governance reforms, and the cement industry. Advertisement
According to the survey, approximately 1.38 lakh real estate projects and 95,987 real estate agents have been registered under the Real Estate Regulatory Authority (RERA) across India as of early January 2025. Additionally, RERA has resolved around 1.38 lakh complaints nationwide, highlighting its role in improving transparency and accountability in the sector.
The Pradhan Mantri Awas Yojana-Urban (PMAY-U) has sanctioned 1.18 crore houses as of late November 2024, with 1.14 crore already under construction and over 89 lakh completed. In September 2024, the government introduced PMAY-U 2.0, aiming to assist an additional one crore households. So far, 29 states and union territories have signed agreements to implement this expanded scheme, with six lakh houses approved for construction in FY25.
Similarly, under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G), around 2.69 crore rural houses have been completed since 2016. The scheme has been extended to cover the construction of an additional two crore rural homes over the next five years, with completion expected by 2029.
By September 2024, 1,068 resolution plans had been approved under the Insolvency and Bankruptcy Code (IBC), enabling creditors to recover INR 3.6 lakh crore. This represents 161% of the liquidation value and 86.1% of the fair value, based on data from 964 cases where fair value estimates were available. The average haircut for creditors was about 14% relative to fair value and 69% relative to their admitted claims.
Additionally, 79 corporate debtors were liquidated as going concerns, with claims amounting to INR 1.4 lakh crore against a liquidation value of INR 4,678.2 crore. Liquidators managed to realise INR 3,674.1 crore from these cases. The resolutions spanned across industries, including steel manufacturing, real estate, and FMCG sectors.
The government has continued its push for deregulation and governance reforms by simplifying taxation laws, rationalising labour regulations, and decriminalising business laws. States have also taken initiatives to reduce regulatory burdens by engaging with businesses. For instance, Haryana and Tamil Nadu amended building regulations 12 times in the past decade to streamline construction processes, while Punjab introduced industry grievance redressal sessions and eased multiple business-related laws.
For India to sustain rapid economic growth, both the central and state governments need to ensure that regulatory frameworks support small and medium enterprises (SMEs) in operating efficiently and competing in cost-effective ways. Regulations should be minimal yet effective, balancing business needs with compliance requirements.
India is currently the second-largest cement producer in the world, following China. The country's cement industry comprises 159 large integrated cement plants, 128 grinding units, five clinkerisation units, and 62 mini cement plants, with an annual installed capacity of around 639 million tonnes. Cement production stood at approximately 427 million tonnes in FY24.
A significant portion of the cement industry is concentrated in states such as Rajasthan, Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Gujarat, Tamil Nadu, Maharashtra, Uttar Pradesh, Chhattisgarh, Odisha, Meghalaya, and West Bengal. Despite having sufficient production capacity to meet domestic demand, India's per capita cement consumption stands at 290 kg far below the global average of 540 kg per capita.
The government's infrastructure push, particularly in highways, railways, housing, and rural development, is expected to drive higher cement demand. At the same time, the industry has been actively working on reducing its carbon footprint, with long-term goals to achieve lower emissions by 2070.
India's economy grew by 5.4% in real terms during the July-September quarter of FY25, falling short of the Reserve Bank of India's (RBI) projection of 7%. In contrast, the country's GDP had expanded by 8.2% in FY24. As of late December 2024, India's foreign exchange reserves stood at USD 640.3 billion, sufficient to cover nearly 90% of its external debt, which was reported at USD 711.8 billion as of September 2024. This robust reserve position provides a strong cushion against external economic vulnerabilities.
The Economic Survey underscores India's efforts in economic expansion, housing, business reforms, and industrial growth. While real estate regulation and affordable housing schemes continue to shape the sector, insolvency reforms have improved credit recovery. The cement industry is set to benefit from infrastructure investments, though sustainability challenges remain. With regulatory changes supporting SMEs and business operations, India is making strides in improving its investment climate. However, with GDP growth falling below RBI projections, policymakers may need to reassess economic strategies to maintain momentum. As the country moves forward, balancing development with sustainable reforms will be key to long-term economic stability.
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