New Delhi, Apr 24 (KNN) TV Narendran, Managing Director of Tata Steel, has projected an impressive 8-10% growth in domestic steel demand for the fiscal year 2024-25, outpacing India's projected GDP growth.

This bullish forecast underscores the resilience of India's steel story, primarily driven by the nation's infrastructure push.

Speaking on the sidelines of the All Indian Management Association's (AIMA) National Leadership Conclave, Narendran expressed confidence in India's ability to meet the rising domestic demand, citing the country's abundant iron ore reserves and expanding production capacities.

"I would expect an 8-10 per cent growth in steel demand for FY25," Narendran stated, adding that consumption is primarily infrastructure-led.

Despite India briefly becoming a net importer of steel in fiscal 2023-24, importing 8.3 million tonnes against 7.5 million tonnes of exports, Narendran views this as a temporary phenomenon.

He emphasised that the majority of imported steel consists of commodity-grade products that can be manufactured domestically.

"Some 95 per cent of the steel coming in can be made in India," Narendran said, urging the government to address unfair import practices.

India's steel consumption surged 14 per cent year-over-year to 136 million tonnes in fiscal 2023-24, far outpacing the global demand growth of less than 2 per cent.

Finished steel production also witnessed a 12.4 per cent increase, reaching 138.5 million tonnes.

While Narendran acknowledged that Indian steel prices would continue to be influenced by China's production and export levels, he expressed optimism that potential production cuts in China could help stabilise prices globally and domestically.

(KNN Bureau)