India's steel demand is projected to sustain a robust growth rate of around 10% in the coming years, driven by the government's strong emphasis on infrastructure development, according to Steel Secretary Nagendra Nath Sinha.
Sinha highlighted the government's unwavering focus on infrastructure as the key catalyst propelling the surge in steel demand. He noted that domestic steel demand witnessed a remarkable year-on-year growth of 13-14% in the fiscal year 2023-24, and this upward trajectory is expected to continue.
Official data substantiates the sector's buoyancy, with India's crude steel production soaring to 145 million metric tons and consumption reaching 136 million metric tons in the 2023-24 fiscal year.
The government's accelerated spending on infrastructure projects, particularly ahead of the country's elections, is anticipated to be the primary growth driver for steel demand in the fiscal year 2023/24, with a projected increase of 9-10% year-on-year.
Rating agencies like ICRA and Crisil have also forecasted robust steel demand growth in India, citing the government's infrastructure push as a key factor. However, challenges such as competition from Chinese imports and uncertain economic conditions in Europe may pose headwinds for the industry.
Overall, the Indian steel sector is poised for sustained growth, underpinned by the government's unwavering commitment to infrastructure development and the consequent surge in steel demand
