Demand for steel in India will reach 221-275 million tons by FY 2033/2034

The average annual growth rate of total steel demand in India over the next decade will be 5-7.3%. Such a forecast in its latest report is given by the consulting corporation Deloitte, reports Business Standard.

As a result, according to various scenarios, by 2033/2034 fiscal year, the demand for steel in the country will reach 221-275 million tons.

This growth will mainly be stimulated by government spending on various infrastructure projects, including the development of 11 industrial corridors under the Prime Minister’s Gatishakti National Master Plan. The corridors include 32 projects that are planned to be implemented in four stages.

From 2013/2014 to 2023/2024, the financial year of rolled products consumption in India grew by 5.67% on an average annual basis. In fiscal 2023/2024, domestic consumption of steel products in the country grew by over 14% y/y – up to 136 million tons. This figure was due to the steady dynamics of development projects and an increase in government spending in various sectors of final consumption.

According to the report, the key states for steel consumption are Maharashtra, Uttar Pradesh, Gujarat, Karnataka and Tamil Nadu. These accounted for 41% of total steel consumption in the 2022/2023 financial year.

As GMK Cemter reported erlier, the Indian credit rating agency ICRA has revised its forecast for growth in domestic steel consumption in the country to 9-10% for the 2024/2025 financial year (ends in March 2025). Previously, this estimate was 7-8%. The forecast takes into account the latest trends in the sector. Domestic steel consumption in the country between February and April 2024 increased by 11.3%.