WITHa sustained momentum of investment across different sectors, overall steel demand in India is projected to grow at a CAGR of5per cent to 7.3 per centoverthenextdecadeleading to a steel demand of 221- 275 million tonnes by FY 34 (under different scenarios), according to a report by Deloitte released on Friday. The report, released at ISA Steel InfraBuild Summit here, also said Maharashtra, Uttar Pradesh, Gujarat, Karnataka and Tamil Nadu have establishedthemselvesas leaders in steel consumption, leading to 41 per cent of the total consumption in FY23. “Government spending on infrastructure projects will drive the initial growth phase in the next decade. 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,” the report explained. From FY14 to FY24, India’s finished steel consumption postedaCAGRof5.67per cent.

 

In FY24, domestic finished steel consumptionreached136milliontonnes,markingmorethan 14 per cent year-on-year growth driven by sustained momentum across developmentalprojects andincreased government spending in various end-use industries. The steel industry plays a crucialrole inTelangana’s economiclandscape asduringthe lastfiscal, the state’s steel consumption grew by 15.75 per cent year-on-year from 4.730 milliontonnes inFY22to5.475million tons in FY23, outpacing the national average, thereport said. “Telangana’s steel consumptioninFY23was 5.48MTfor a population of 3.5 crorewhich translates to a per capita steel consumptionof156.43kg, significantly higher thanthe national per capita steel consumption of 93.4 kg. Thisnotonlyunderscoresthestate’srobust industrial activity but also positions Telangana as akey driver of future economicgrowth,” it said. The rising growth of electricvehiclesinTamilNaduwillleadto an increased demand forelectrical steel, while thegrowth of food processingindustries will drive thedemand for stainless steel,thereport further said.