India’s steel production grew by 5.7% whereas consumption grew by 11% for the period from April to December.

Steel production is estimated to be in the range of 117 to 119 million tonne which is likely to be up by 3% to 5% on-year. Whereas the growth rate of steel consumption is expected to be at 10% to 12%. Considering these estimates, it is important to dive deeply into the demand drivers for both production and consumption. 

The launch of National Infrastructure Pipeline (NIP) with a progressive outlook and projected infrastructure investment to the tune of ₹111 lakh crore during FY20-25 is the key indicator of the push towards infrastructure projects across the country.

The NIP currently has more than 8,500 projects with a projected investment of more than ₹100 lakh crore under various stages of implementation.

The budget for FY 23-24 has given the much-needed impetus to the infrastructure, housing and construction sector backed by policy level support by the government. The budget for FY23-24 also focuses on reviving 50 additional airports, heliports, water aerodromes and advanced landing groundings for improving regional air connectivity.

The government’s focus on improving the logistics ecosystem through ‘infrastructure initiatives’ is a force multiplier for domestic steel demand.