BAJAJ BROKING
- Domestic finished steel consumption in India grew by 13% to 136 million tonnes in FY24, up from 120 million tonnes in the previous fiscal year.
- The increase was largely driven by robust demand from the automotive sector, particularly with a focus on electric vehicles, and sustained investments in infrastructure and construction, supported by government projects.
- Production of crude steel also rose significantly by 12.6%, reaching 143 million tonnes, up from 127 million tonnes in FY23, to meet the growing domestic and potential international demand.
- The automotive and infrastructure sectors are key contributors to the surge in steel demand, with the shift towards electric vehicles playing a crucial role.
- The outlook for the Indian steel industry remains positive, with expectations of continued growth driven by sectoral expansions and governmental focus on infrastructure.
- Further enhancements in production technology and efficiency are anticipated to align with global environmental standards and sustain the upward trend in consumption.
The Indian steel industry has demonstrated a commendable performance in the fiscal year 2023-24, with domestic consumption of finished steel reaching 136 million tonnes, marking a significant 13% increase from the previous year. This growth has been largely supported by heightened demand from pivotal sectors such as automotive and infrastructure.
According to a recent report by SteelMint, the country’s finished steel consumption stood at 120 million tonnes in the 2022-23 financial year. The increase in consumption during FY24 is attributed to several factors, with the automotive industry playing a crucial role. Notably, the push towards electric vehicles (EVs) has spurred a wave of renewed interest and investment in the steel sector. Moreover, the resilience of the infrastructure and construction sectors, backed by substantial government-funded projects, has further propelled this demand.
The automotive sector, which has been at the forefront of adopting new technologies and expanding production capacities, particularly in the realm of electric vehicles, has significantly contributed to the increased steel demand. The infrastructure sector is not far behind, with ongoing and new projects requiring vast amounts of steel, thereby ensuring a steady demand trajectory.
In parallel with the rise in consumption, the production of crude steel in India also saw an impressive increase, growing by 12.6% to reach 143 million tonnes from 127 million tonnes in the previous fiscal year. This uptick in production is essential not only to meet domestic demand but also to strengthen India’s position as a key player in the global steel market.
The current trends suggest a robust outlook for the Indian steel industry, with continued growth expected in the coming years. The alignment of the steel sector with governmental infrastructure agendas and the automotive industry's shift towards EVs are likely to keep the demand for steel on an upward trajectory. Furthermore, the increased production capacities and technological advancements in steel manufacturing are poised to enhance efficiency and sustainability, aligning with global environmental standards.
The fiscal year 2023-24 has been a landmark year for India’s steel industry, with significant strides made in both consumption and production. As the country continues to focus on expanding its infrastructure and embracing new automotive technologies, the demand for steel is expected to remain strong, offering numerous opportunities for growth and innovation within the sector. The resilience and strategic expansions observed this year lay a solid foundation for sustained growth, reinforcing the steel industry's vital role in India’s economic development.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
7th Pay Commission Leave Rules & Holidays in India
11 Dec, 2024 | 5 Min. read
Wipro Ltd
11 Dec, 2024 | 7 Min. read
Aditya Birla Group
11 Dec, 2024 | 10 Min. read
What is the Lock-in Period in IPO
11 Dec, 2024 | 6 Min. read
Textile Sector in India
11 Dec, 2024 | 11 Min. read
Step-by-Step Guide to Accessing Your Income Tax Assessment Order Online
11 Dec, 2024 | 3 Min. read
IPO vs FPO vs OFS: Key Differences in How Companies Raise Capital
11 Dec, 2024 | 8 Min. read
Gold Price in India - Gold Prices Edge Higher as Futures Hit $2,654.50
11 Dec, 2024 | 39 Min. read
Indian Overseas Bank Secures ₹1,359 Crore Income Tax Refund for AY 2015-16
11 Dec, 2024 | 2 Min. read
HG Infra Secures ₹899 Crore NH-227B Road Upgrade Project in UP
11 Dec, 2024 | 2 Min. read
NTPC Green Energy Secures 500 MW Solar Project with 250 MW ESS from SECI
11 Dec, 2024 | 2 Min. read
Awfis Space ₹583 Crore Block Deal Launches at ₹680 Floor Price
11 Dec, 2024 | 2 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading