In the hindsight the reason you had global companies setting up their manufacturing plants in India was the low cost of production. Looking ahead or for that matter looking at the conditions now, will it remain the case or the companies would look at a different destination altogether?
>Real estate prices are on a constant raise.
> With a restraint on increase of production capacity and imports, the cement prices are expected to be directed north for times to come.
> Another reason for the rise in cement price could be the high cost of production. The fossil fuel such as coal is getting depleted. But the demand for it remains high, directly affecting its cost thereby. The energy requirement for the country will up by 270,000 MW of electric power by 2030 as against the current 130,000 MW capacity! The power cost is on a rise for sure!
> There is dearth of quality workers.
> The wages have upped by almost 30-40% this year.
The real estate prices are not expected to go down neither the cement industry looks like will cow down. The infrastructure costs rocket will surely not plummet. The 2006 figures show a 8.9% unemployment in India. We definitely need to create more jobs but how?