Indian Economy News

Government infrastructure push steers steel demand to 221-275 million tonnes by FY34: Report

The demand for steel in India is projected to grow significantly over the next decade, with annual growth rates expected to range from 5% to 7.3%. According to a Deloitte report released at the ISA Steel InfraBuild Summit, this growth will drive demand to between 221 million and 275 million tonnes by FY34 under various scenarios. Leading states like Maharashtra, Uttar Pradesh, Gujarat, Karnataka, and Tamil Nadu accounted for 41% of India's steel consumption in FY23, driven by substantial government investments in infrastructure projects, including the PM Gatishakti National Master Plan's development of 11 industrial corridors and 32 associated projects.

From FY14 to FY24, India saw a compound annual growth rate (CAGR) of 5.67% in finished steel consumption, reaching 136 million tonnes in FY24, with a notable increase of over 14% YoY. This growth was driven by ongoing momentum in developmental initiatives and increased governmental spending across multiple sectors. Telangana has emerged as a standout performer in the steel sector, recording a robust 15.75% YoY increase in steel consumption from FY22 to FY23, surpassing the national average. Telangana's industrial activity underscores its pivotal role in driving future economic growth, with a per capita steel consumption of 156.43 kg in FY23, well above the national average of 93.4 kg. The report also highlights Tamil Nadu's growing demand for electrical steel due to the expansion of electric vehicles. It anticipates increased demand for stainless steel from the burgeoning food processing industry.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.