India has the world’s fastest expanding steel industry as steelmakers rush to meet the government’s steel goal to expand capacity to 300Mtpa by 2031 and 500Mtpa by 2047.
Rising demand for steel is being driven
by firm infrastructure policies ranging from housing construction, railways to
aviation. India’s Finance Ministry has announced plans to spend US$134bn in
FY2024-25, up 11% on-year.
India’s economy is expanding at about
6-7% a year, driven by a large and youthful demographic and new
reforms. The country’s consumer market is set to become the world’s third
largest by 2027.
The re-election of Indian Prime Minister
Modi for a third term will spur the development of steel projects in line with
the country’s existing infrastructure development plans. However, with a lack
of majority seats, the new government has become dependent on allies and is
bound to have a more consultative approach to reach unification on policies.