India perhaps is the only country in the world offering incentives for setting up cement plants. But
these tax incentives often give an unfair advantage to the new players by allowing them to retain
the sales tax collected from consumers. The players use these incentives to penetrate the market by
undercutting their competitors and in the process distort the market. As a result, even inexperienced
entrepreneurs have been tempted to enter the fi eld. That is why the Indian cement industry is the
most fragmented (except China) in the world. It is a peculiar situation where none of the ...
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