Steel demand to grow by 70% to 113 MT by 2016-17
India's steel demand is likely to jump by over 70 per cent to 113 million tonnes (MT) by the end of the next Five-Year Plan, with the infrastructure sector projected to witness investments worth USD 1 trillion.
New Delhi: India's steel demand is likely to jump by over 70 per cent to 113 million tonnes (MT) by the end of the next Five-Year Plan, with the infrastructure sector projected to witness investments worth USD 1 trillion.
A panel appointed by the Steel Ministry to assess demand and supply of steel in the 12th Five-Year Plan (2012-17) has estimated that steel demand would grow by 36 MT during the period to touch 113 MT in its final year, a source in the ministry said.
India's total steel demand stood at 65.61 MT last fiscal.
The panel chaired by the Steel Ministry's financial advisor, S Machendranathan, and comprising representatives of all leading steel-makers and associations, estimated that steel demand would grow by 10.3 per cent annually if the country maintains a 9 per cent GDP growth rate, as projected by the Planning Commission in its Approach Paper for the 12th Plan.
As per its projections, demand for steel will amount to 77.3 MT by 2012-13, 85.05 MT by 2013-14, 93.6 MT by 2014-15, 103.05 MT by 2015-16 and 113.3 MT by 2016-17.
However, the panel does not see a need for increased imports of steel to meet India's growing demand, as the domestic industry is slated to add 40 MT of additional finished steel-making capacity during the 12th Plan, taking it to 115.3 MT by 2016-17 from 75.3 MT in FY'13.
It estimates that imports of steel will gradually come down to 5 MT by 2016-17 from 6 MT in 2012-13 and exports to see a sharp rise from 4 MT in 2012-13 to 7 MT by 2016-17.