According to India’s Ministry of Statistics, in the calendar year 2017, construction and infrastructure accounted for 62 percent of India’s total steel consumption while engineering and fabrication were 22 percent, automotive 10 percent, packaging 3 percent, and other transport 3 percent. The increased investment in infrastructure included in the latest Indian Union Budget is expected to positively affect the steel sector through the fiscal year ended March 2019.
Additionally, the growth of GDP is expected to rebound to 7.5 percent from the expected 6.5 percent for the ongoing fiscal year. The 2017 fiscal year, which ends in March 2018, has been affected by changes in currency denominations, changes in regulations, and changes in tax procedures that delayed some business activity including investments.
Note: FY (India’s Fiscal year is from April 1-March 31), estimate and forecast from various leading steel analysts
|
FY |
2013-2014 |
2014-2015 |
2015-2016 |
2016-2017 |
2017-2018 Estimate |
2018-2019 Forecast |
|
GDP growth (percent) |
6.6 |
7.2 |
8.0 |
7.1 |
6.5 |
7.5 |
|
Inflation (percent) |
9.5 |
6.0 |
5.0 |
4.5 |
4.0 |
4.6 |
|
Fiscal Deficit/ GDP |
4.6 |
4.0 |
3.9 |
3.5 |
3.5 |
3.3 |