Hyderabad, with sustained investment drive across different sectors, overall steel demand in India is projected to grow at a CAGR of 5 per cent to 7.3 per cent over the next decade, leading to demand of steel from 221 to 275 million tonnes by FY34 (under different scenarios), according to a Deloitte report published on Friday.
The report, released at the ISA Steel InfraBuild Summit here, also said that Maharashtra, Uttar Pradesh, Gujarat, Karnataka and Tamil Nadu have established themselves as leaders in steel consumption, which accounted for 41 per cent of the total consumption in the year prosecutor 23.
"Government spending on infrastructure projects will drive the initial phase of growth in the next decade. The development of 11 industrial corridors comprising 32 projects, which will be developed in four phases under the PM Gatishakti National Master Plan, will be a key driver for the steel consumption," the report explained.
From FY14 to FY24, India's finished steel consumption recorded a CAGR of 5.67 per cent. In FY24, domestic consumption of finished steel reached 136 million tonnes, representing a year-on-year growth of over 14 percent driven by sustained momentum in development projects and higher government spending in various steel industries. end use.
The steel industry plays a crucial role in Telangana's economic outlook as during the last fiscal year, the state's steel consumption grew by 15.75 per cent year-on-year from 4.73 billion tonnes in FY22 to 5.475 million tonnes in FY22. tons in FY23, exceeding the national average. saying.
"Telangana's steel consumption in FY23 was 5.48 MT for a population of 3.5 crore, which translates into a per capita steel consumption of 156.43 kg, significantly higher than the per capita national steel consumption of 93.4 kg. This not only underlines the robust industrial activity of the state but also positions Telangana as a key driver of future economic growth,” he said.
Rising growth of electric vehicles in Tamil Nadu will lead to higher demand for electric steel, while growth in food processing industries will drive demand for stainless steel, the report said.
The report, released at the ISA Steel InfraBuild Summit here, also said that Maharashtra, Uttar Pradesh, Gujarat, Karnataka and Tamil Nadu have established themselves as leaders in steel consumption, which accounted for 41 per cent of the total consumption in the year prosecutor 23.
"Government spending on infrastructure projects will drive the initial phase of growth in the next decade. The development of 11 industrial corridors comprising 32 projects, which will be developed in four phases under the PM Gatishakti National Master Plan, will be a key driver for the steel consumption," the report explained.
From FY14 to FY24, India's finished steel consumption recorded a CAGR of 5.67 per cent. In FY24, domestic consumption of finished steel reached 136 million tonnes, representing a year-on-year growth of over 14 percent driven by sustained momentum in development projects and higher government spending in various steel industries. end use.
The steel industry plays a crucial role in Telangana's economic outlook as during the last fiscal year, the state's steel consumption grew by 15.75 per cent year-on-year from 4.73 billion tonnes in FY22 to 5.475 million tonnes in FY22. tons in FY23, exceeding the national average. saying.
"Telangana's steel consumption in FY23 was 5.48 MT for a population of 3.5 crore, which translates into a per capita steel consumption of 156.43 kg, significantly higher than the per capita national steel consumption of 93.4 kg. This not only underlines the robust industrial activity of the state but also positions Telangana as a key driver of future economic growth,” he said.
Rising growth of electric vehicles in Tamil Nadu will lead to higher demand for electric steel, while growth in food processing industries will drive demand for stainless steel, the report said.
