The country's steelmakers predict an increase in domestic demand for steel

The Indian government has allocated about 11 trillion rupees ($134 million) for capital expenditures in the interim budget for fiscal year 2024/2025 (starting in April), which is 11.1% more than in the previous year. It is reported by Moneycontrol.

According to Dilip Oommen, President of the Indian Steel Association, this decision will lead to an increase in domestic demand for steel, stimulating private investment and job creation.

«The emphasis on building all forms of infrastructure – digital, social and physical – at an unprecedented pace is promising,» he said.

India’s Jindal Steel reported on social media that it is committed to playing a key role in this by contributing to the country’s development. Tata Steel CEO T.V. Narendran called the move positive and said it would have a multiplier effect on the country’s economy as a whole.

The Government of India plans to reduce the budget deficit to 5.1% of GDP in FY2024/2025. The deficit for the current fiscal year was revised to 5.8%.

As GMK Center reported earlier, in 2023, India increased steel production by 11.8% y/y – to 140.2 million tons. The country is ranked second in the top ten steel producing countries by World Steel.

Also, India aims to increase the share of scrap in steel production to 50% by 2047. The government will rely on green steel to reduce pollution from the steel industry. According to the Ministry of Steel, the country produces about 25 million tons of scrap annually and imports about 5 million tons.