New Delhi: Tata Steel hopes demand for the alloy will grow at a faster rate of 6-8 percent in current fiscal on the back of higher demand from consuming sectors.
"We expect this year, it should be somewhere between 6-8 percent. This is because the economy is expected to grow at six percent, so the steel demand would grow by at least 6-8 percent," Tata Steel Managing Director H M Nerurkar told PTI.
On consumption growth of steel at 3.3 percent lagging the country's estimated 5 percent GDP expansion last fiscal, he said: "Last year, major steel consuming sectors were not growing well. This year, they would."
According to Joint Plant Committee (JPC), a body under Steel Ministry, India's steel consumption growth in 2012-13 was the lowest in last three years. Steel consumption grew by 5.5 percent in 2011-12 and 9.9 percent in 2010-11.
World Steel Association, the leading industry body, has forecast India's steel demand will grow by 5.9 percent to 75.8 million tonnes in 2013.
"In India, steel demand is expected to pick up and will grow by 5.9 percent to 75.8 million tonnes in 2013 following 2.5 percent growth in 2012 as monetary easing is expected to support investment activities," WSA said in a recent report.
In 2014, growth in steel demand is expected to further accelerate to seven percent thanks to reform measures aimed at narrowing the fiscal deficit, coupled with measures to improve the foreign direct investment climate, it added.