Indian domestic steel demand is projected to experience a growth rate of 7.5 percent, reaching 128.85 million metric tons in the fiscal year 2023-2024, as stated by the Indian Steel Association (ISA), the representative organization for domestic steel producers. This forecast was announced on Friday, May 26.
The ISA predicts a continuous expansion in Indian domestic steel demand, with an annual increase of 8-9 million metric tons. They anticipate a growth rate of 6.3 percent in the following fiscal year, 2024-2025, resulting in a demand of 136.97 million metric tons.
The association highlighted that domestic steel demand had already seen a substantial rise of 13.3 percent in the previous fiscal year, 2022-2023, reaching 119.86 million metric tons.
According to the ISA, the surge in investment share in the country's GDP, supported by significant government capital expenditure and improved private investments, will serve as the driving force for growth in the construction, railways, and capital goods sectors.
The completion of various projects in the real estate sector is expected to be robust. Furthermore, investments in infrastructure, renewables, mining, and the steel sector itself are likely to benefit the capital goods sector, creating additional opportunities for growth.
On the other hand, the intermediate goods sector, which relies on the growth and exports of the automobile industry, presents a mixed outlook. The ISA notes that sluggish global demand poses limitations to the potential of the export sector in general.