New Delhi: Tata Steel Thursday said the total demand for steel in the current fiscal is likely to grow by 5.5 percent to around 75 million tonnes.
The demand growth rate may be better next fiscal at around seven percent bouyed by economic growth fuelled by reforms announced by the government, company Managing Director H M Nerurkar said in a statement.
"In the fiscal 2012-2013, growth in domestic steel demand is expected to be around five and a half percent. Total demand is expected to be around 75 million tonnes, up from 71 million tonnes in 2011-2012," Nerurkar said.
"In 2013-14, demand is expected to be higher at around 7 percent. Reforms announced by the government will provide a fillip to growth in the economy," he added.
The company expects a modest two and a half percent growth in Europe next fiscal. Europe is slated to register a negative growth this year.
Nerurkar said the formation of the Cabinet Committee on Investment for single-window clearance for mega projects would generate activity in the power and roadways sectors, among others.
"The expected lowering of interest rates by RBI in January will provide impetus to the manufacturing and consumer durables sectors, among others. The full impact of all these will be felt in 2013-14," he said.
The Tata Steel Managing Director said with the ongoing greenfield and brownfield expansions, India is expected to become the world's second largest producer of crude steel in the next two years.