Steel production in India, the world’s third largest producer, is expected to grow annually at an average of 7.3 per cent during 2016 to 2020, and touch 127.1 million tonnes (MT), a report by BMI Research said.
The growth will be driven by state-run giant SAIL and Tata Steel, the firm part of the Fitch Group said. “India will be the global steel production growth bright spot as demand from construction, auto and infrastructure industries continue to accelerate,” it said. Besides, government has been spearheading the push towards the boost in steel production capacity, with upgrades being made to existing steel mills and state-owned companies stepping in to build new steel plants, it added. “We forecast India’s steel output to average annual growth of 7.3 per cent during 2016-2020, higher than 5.3 per cent during 2011-2015. India’s steel output will grow from 92.7 MT in 2016 to 127.1 MT by 2020,” BMI Research said.