Domestic steel production is closely linked to GDP growth, infrastructure and construction spending. Given that India’s GDP is already pegged to grow at least 7 per cent over FY19-20, what is it that you are expecting it to translate into for the steel industry in particular?
If one looks at the last few years, the steel demand is actually lagging a little bit compared to the GDP growth. So, with with 7 per cent plus GDP growth expected, the steel demand would certainly go up by about 6-6.5 per cent. Historically as well, if one looks at China’s example, you would find that few years back, the steel demand was actually going up substantially more than the GDP growth. Therefore, we are hoping that as the infrastructure and the construction demand increases and the economic situation improves overall, there would be a time when the steel demand can actually outperform the GDP growth. Read More
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