Driven by construction and capital goods industry, India’s steel consumption is expected to grow 5.3 percent to 85.8 million tonnes (MT) this fiscal from 81.5 MT in 2015-16, industry body ISA said today.
Indian Steel Association (ISA), which represents the integrated steel producers in the country, expects demand for the metal to rise 5.6 percent to 90.6 MT in 2017-18, it said in a statement. Domestic steel demand is forecast to consistently inch upwards in all the eight quarters during 2016-17 and 2017-18, ISA added. “Construction and capital goods sectors are likely to see an upward trend in growth, supported by higher infrastructure spending. Government initiatives by way of increments to government employees and public sector staff are likely to boost automotive and consumer durables in 2016-17,” it noted. In addition, a pick-up in rural income due to good monsoon and government initiatives to boost rural income are expected to help create sustainable rural demand, it said.