Global demand for sand, a key component in concrete, glass, and infrastructure development, has increased sharply in recent decades, driven by rapid urbanisation and large-scale construction projects.

According to the United Nations Environment Programme, sand and gravel are the most extracted solid materials worldwide, exceeding fossil fuels and biomass in volume.

The material is essential for producing concrete, which underpins infrastructure such as roads, bridges, housing, and commercial developments. Rapid urban expansion in emerging economies has intensified demand, particularly in regions undergoing large-scale infrastructure investment.

However, not all sand is suitable for construction. Desert sand, shaped by wind erosion, is generally too smooth for use in concrete, leading to increased extraction from riverbeds, coastlines, and marine environments.

The extraction of sand from rivers and coastal areas has raised concerns about environmental degradation. UNEP reports indicate that excessive sand mining can lead to erosion, reduced water quality, loss of biodiversity, and increased vulnerability to flooding.

River ecosystems are particularly affected, as sediment removal alters natural flow patterns and habitats.In several countries, unregulated or illegal sand mining has emerged as a governance challenge. The high demand and relatively low cost of extraction have contributed to informal markets, complicating enforcement of environmental regulations.

Governments and international organisations have begun to address the issue through policy measures aimed at sustainable resource management. UNEP has called for improved monitoring, better data collection, and the development of alternatives to natural sand, including recycled construction materials.

The growing demand for sand has implications for global supply chains and construction costs. As easily accessible sources become depleted, transportation costs increase, affecting project economics.

In some regions, sand has become a strategic resource, influencing local markets and development planning.Efforts to promote sustainable construction practices, including material efficiency and recycling, are gaining attention among policymakers and industry stakeholders.

However, large-scale adoption remains limited, and natural sand continues to dominate supply.The issue highlights the broader challenge of balancing economic growth with resource sustainability.

As urbanisation continues, the pressure on sand resources is expected to persist, requiring coordinated policy responses at national and international levels.

The HSBC flash India Composite Purchasing Managers’ Index, compiled by S&P Global, fell to 56.5 from February’s 58.9, missing expectations in a Reuters poll and marking the sharpest slowdown in 18 months. While readings above 50 indicate expansion, the drop signalled a loss of momentum at the end of the fiscal year.

Manufacturing slowdown deepensThe manufacturing sector bore the brunt of the slowdown, with its PMI declining to a 4-1/2-year low of 53.8 from 56.9. Factory output growth weakened to its softest pace since August 2021, reflecting heightened uncertainty and subdued consumer demand.

The services sector, which makes up the bulk of India’s economy, also eased, with its PMI slipping to 57.2 from 58.1.Cost pressures intensifyInput costs rose at their fastest pace since June 2022, driven by higher prices for oil, energy, food, metals and chemicals.

Firms responded by increasing selling prices at the quickest rate in seven months, though some absorbed costs by compressing margins.India’s heavy reliance on imported energy has amplified the impact.

As the world’s third-largest oil importer, it sources about 90% of its crude and nearly half of its natural gas from overseas, making it vulnerable to price shocks linked to disruptions in the Strait of Hormuz. Oil prices have risen more than 40% since the conflict began.

External demand offers supportDespite weakening domestic demand, international orders rose to their highest level since the sub-index was introduced in 2014, with businesses reporting increased demand from Asia, Europe, the Americas and the Middle East.

Business confidence improved to its strongest level since September 2023, supporting the fastest pace of job creation since August, even as inflation risks mount and growth prospects face renewed pressure.