Steel's Constructive Way To Growth

India is one of the economies in the world where steel demand is continually showing positive growth.

- Tamajit Pain

The country’s growing urban infrastructure and manufacturing sectors indicate that demand is likely to remain robust in the years ahead. If India is to achieve the goal of being a “developed nation”, the steel industry must play a crucial role as has been the case with all the major developed countries and East Asian countries like Japan, South Korea and China.

Notwithstanding the current challenges, Indian steel industry still has significant potential for growth. the accelerated spend in infrastructure sector, expansion of railways network, development of domestic shipbuilding industry, opening up of defence sector for private participation, anticipated growth in automobile and capital goods industry and the construction in urban & rural areas, are expected to create significant demand for steel in the country.

Growth in steel consumption in a country is typically linked to the economic growth and steel intensity. While growth in GDP is a crucial determinant of growth in overall consumption, steel intensity is the definitive parameter for an economy and determines the growth rate of steel demand vis-à-vis consumption over time.

According to the National Steel Policy, steel consumption from construction & infrastructure sectors is expected to increase to 59 percent by 2030-31.

Creation of steel demand in the country is one of the major task to be undertaken in this direction. To drive steel demand, Ministry has identified construction and manufacturing sectors like Rural development, Urban infrastructure, Roads & Highways, Railways etc. to be the key focus areas and will take necessary steps to achieve the same through following –