Indian domestic steel demand will grow at 7.5 percent to 128.85 million mt in the fiscal year 2023-24, according to a forecast by the Indian Steel Association (ISA), the representative body of domestic steel producers, said on Friday, May 26.
According to the ISA, going forward Indian domestic steel demand will expand 8-9 million mt every year, with growth of 6.3 percent in 2024-25 to 136.97 million mt.
It said that domestic steel demand increased by 13.3 percent in 2022-23 to 119.86 million mt.
“The rising share of investment in GDP, backed by the strong capital expenditure outlay by the government and improving private investments, will drive the construction, railways and capital goods sector,” the ISA said.
Project completion in the real estate sector is also expected to be “robust”. “The investments in infrastructure, renewables and mining, as well as within the steel sector itself, are expected to benefit the capital goods sector,” it said.
However, the intermediate goods sector, dependent on the automobile sector’s growth as well as on exports, was more of a mixed bag, according to the ISA, with sluggish global demand limiting the potential of the export sector in general.