India’s demand for stainless steel, which was 4 million mt in 2022, is projected to record a nine percent compounded annual growth rate (CAGR) in the coming three fiscal years through 2025, rating agency CRISIL has said in an industry report.
The report said that the growth will be driven by the rapid adoption of stainless steel in railway equipment, a focus of government expenditure and the rising application of the material in the automobile and construction sectors.
The strong demand coupled with a lack of capacity addition over the last three fiscal years has laid the stage for major capital expenditures by domestic stainless steel producers, the report said.
The credit profile of domestic producers is expected to remain healthy in the fiscal year 2023-24 on the back of lower debt and stable profits, the report added.