ICRA raises India's steel demand growth forecast for FY 2023-24

The current momentum is supported by the government's infrastructure projects, with domestic steel demand growing at double-digit rates from 2021-22.

According to the report, new steelmaking capacity of 14.3 million metric tonnes per annum is expected to be added by the industry this fiscal year, which will be the largest addition in a single year. The industry's supply pipeline is expected to remain strong in fiscal 2024-25, with about 12.3 million metric tonnes of annual capacity lined up for commissioning.

Despite the surge in new supply, favourable local demand will sufficiently absorb it, helping the industry's capacity utilisation increase from 80 per cent in the previous fiscal year to 82 per cent this fiscal year, the report said.