Domestic steel consumption is expected to grow 5.3 % to 85.8 million tonne (mt) this fiscal from 81.5 mt in 2015-16, led by construction and capital goods sectors, industry body Indian Steel Association (ISA) has said. ISA which represents the integrated steel producers in the country, expects demand for the metal to rise 5.6% to 90.6 mt in 2017-18.
India's steel demand is forecast to consistently moving up in past 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 pointed out.
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. "Railways and intermediate sectors are also slated to recover from low output in previous years and gain momentum from first quarter of 2017," ISA said. Growth in almost all the sub-sectors are expected to pick up in the current fiscal year and further achieve higher growth rates in 2017-18, it added.
