India's Steel demand faces slowdown amid election delays, import surge

21 Dec 2023 CW Team

India, ranking as the world's second-largest crude steel producer, experienced rapid growth in steel demand thanks to consistent government expenditure on infrastructure projects, positioning itself as one of the globally fastest-growing markets for the alloy, despite a slowdown in global demand.

Projections indicate that steel demand will witness a more moderate increase of 7%-10% in the fiscal year 2024-25, a slower pace compared to the anticipated growth of 11%-12% in the current year until March 2024, as outlined by industry experts and analysts.

With Prime Minister Narendra Modi's Bharatiya Janata Party vying for a third term in the forthcoming early 2024 general elections, the election process in India, known as the world's largest democratic exercise, spans weeks due to staggered voting.

Fitch Ratings forecasts a 9% rise in finished steel consumption in India for FY25, following a 12% increase in FY24. Despite this, India is expected to maintain its position as the primary global growth market for steel.

The construction sector, a pivotal driver of India's steel market, experienced robust growth, posting a 13.3% year-on-year expansion in the July-September quarter. However, analysts, such as Puneet Paliwal from London-based CRU Group, anticipate a slowdown in government capital expenditure-driven steel demand growth in 2024, particularly in the first half of the year.

Despite reaching a five-year high in finished steel consumption between April and October, India has witnessed a surge in steel imports, reaching a four-year peak. Industry officials have expressed concerns about higher raw material costs, and the combination of increased imports and slower demand is anticipated to exacerbate challenges faced by India's steel mills. The government, while acknowledging the rise in imports, has indicated a commitment to monitoring the situation.

India's steel demand is poised to decelerate in the upcoming financial year starting in March, attributed to the substantial disruptions caused by a massive general election. Analysts and industry leaders anticipate delays in government initiatives and infrastructure investments due to the electoral process. India, ranking as the world's second-largest crude steel producer, experienced rapid growth in steel demand thanks to consistent government expenditure on infrastructure projects, positioning itself as one of the globally fastest-growing markets for the alloy, despite a slowdown in global demand. Projections indicate that steel demand will witness a more moderate increase of 7%-10% in the fiscal year 2024-25, a slower pace compared to the anticipated growth of 11%-12% in the current year until March 2024, as outlined by industry experts and analysts. With Prime Minister Narendra Modi's Bharatiya Janata Party vying for a third term in the forthcoming early 2024 general elections, the election process in India, known as the world's largest democratic exercise, spans weeks due to staggered voting. Fitch Ratings forecasts a 9% rise in finished steel consumption in India for FY25, following a 12% increase in FY24. Despite this, India is expected to maintain its position as the primary global growth market for steel. The construction sector, a pivotal driver of India's steel market, experienced robust growth, posting a 13.3% year-on-year expansion in the July-September quarter. However, analysts, such as Puneet Paliwal from London-based CRU Group, anticipate a slowdown in government capital expenditure-driven steel demand growth in 2024, particularly in the first half of the year. Despite reaching a five-year high in finished steel consumption between April and October, India has witnessed a surge in steel imports, reaching a four-year peak. Industry officials have expressed concerns about higher raw material costs, and the combination of increased imports and slower demand is anticipated to exacerbate challenges faced by India's steel mills. The government, while acknowledging the rise in imports, has indicated a commitment to monitoring the situation.

Resources

04 Jun 2026

ULCCS Showcases Cooperative Model at UN Symposium

Uralungal Labour Contract Co-operative Society (ULCCS) showcased its community-led development model at the United Nations Headquarters in New York, where it participated as a panellist at the International Symposium on Cooperative Financial Institutions held on 28–29 May 2026.Jointly organised by the United Nations Department of Economic and Social Affairs (UN DESA), the International Cooperative Banking Association (ICBA), and the International Cooperative Alliance (ICA), the symposium was held under the theme ‘Fuelling Inclusive and Equitable Growth’ and brought together policymakers,..

Infrastructure Transport

04 Jun 2026

Delhi Airport to Finalise 20-Year Master Plan

Delhi International Airport Ltd (DIAL) is finalising a 20-year master plan to guide long term infrastructure and operational development at Indira Gandhi International Airport, an official said. The operator expects the plan to reflect changes in the airline industry, shifts in the competitive landscape and evolving infrastructure requirements across terminals, airside and support services. The official said the document is likely to be ready in the next two to two-and-a-half months as the operator moves through planning stages. The plan will be prepared after consultations with airport users ..

Real Estate

04 Jun 2026

Aadhar Housing Finance Targets Rs 500 bn AUM By FY29

Aadhar Housing Finance has set a target to raise its asset under management to Rs 500 billion (bn) by the end of FY29, aiming to achieve this over the next three financial years through an 18-20 per cent loan growth trajectory. The firm focuses on the low-income segment with a ticket size of less than Rs 1.5 million (mn) and has relied on that segment to drive expansion. The company closed FY26 with an AUM of Rs 305.71 bn, reflecting the expansion in recent years, and it reported a net profit rise of 22 per cent to Rs 11.08 bn. Management indicated that gross non-performing assets stood at 1.0..