Steel demand to grow by 70% by 2016-17: Steel Ministry Panel

NEW DELHI: India's steel demand is likely to jump by over 70% to 113 million tonnes (MT) by the end of the next Five-Year Plan, with the infrastructure sector projected to witness investments worth $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% annually if the country maintains a 9% GDP growth rate, as projected by the Planning Commission in its Approach Paper for the 12th Plan.

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 FY13.