India's steel consumption is expected to rise 5%-7.3% over the next decade to 221-275 million tonne, buoyed by demand from industries and infrastructure projects across the country, a new report said.
The report by Deloitte, unveiled at the ISA Steel InfraBuild Summit on Friday, also highlighted that Maharashtra, Uttar Pradesh, Gujarat, Karnataka, and Tamil Nadu accounted for 41% of the nation's total consumption of the alloy in the financial year-ended March 2023.
"Government spending on infrastructure projects will drive the initial growth phase in the next decade," the report said. "The development of 11 industrial corridors comprising 32 projects, to be developed in four phases under the PM Gatishakti National Master Plan, will be a key driver for steel consumption."
From April 2014 to March 2024, India's finished steel consumption posted an annualised growth of 5.67%. In the fiscal 2024, domestic finished steel consumption reached 136 million tonnes, marking more than 14% year-on-year growth driven by developmental projects and increased government spending in various industries.
The steel industry is pivotal to Telangana's economy. The southern state's steel consumption rose 15.75% year-on-year to 5.475 million tonnes in FY23.
"Telangana's steel consumption... equates to a per capita consumption of 156.43 kg," the report said. "This figure is considerably higher than the national average of 93.4 kg per capita. Such a significant consumption rate not only highlights the state's vigorous industrial activities but also marks Telangana as an influential force in driving future economic expansion."
The escalating growth of electric vehicles in Tamil Nadu is expected to boost the demand for electrical steel, the report said. Simultaneously, the expansion of food processing industries will propel the demand for stainless steel.
(With inputs from PTI.)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
