Tata Steel expects the metal’s consumption in India to grow by about 5 per cent to 75 million tonne in 2014-15 on hopes that the economy will kick-start once the new government is in place after the general elections results are out next week.
“We expect the economy to kick-start post the new Government… Fundamentals of the economy remain strong and the need for infrastructure creation is stronger,” Tata Steel VP, marketing & sales, Peeyush Gupta said.
“Consequently, we expect robust improvement in investment -led demand (both govt as well as private) in FY’15 and steel consumption should touch 75 MT, a growth of 4.5-5 per cent over FY’14,” he added.
Mr Gupta said in the company’s newsletter posted on the website that projections for long-term growth continue to be bullish and the country will gear itself to touch 125 MT by 2020 and 175 MT by 2025.
He said the coming 10 years will be a “decade of steel”.
He also projected rural consumption to grow as the economy improves. India’s per capita steel consumption is 58 kg as against world average of 250 kg, while rural India consumes only 14 kg per capita.