New Delhi, Apr 11 (KNN) India's steel demand is likely to grow by over 7% in 2019 and 2020, driven by sectors like construction, capital goods and railways, as per the Indian Steel Association (ISA).

"The Indian Steel Association has forecast India's steel demand to grow by 7.1 percent in calendar year 2019 and by 7.2 percent in calendar year 2020," the domestic steel body said.

It also forecast that India's steel consumption is likely to cross 100 million tonnes (MT) mark in 2019.

As for financial year, the forecast for steel demand growth is 7.2% in both 2019-20 and 2020-21, the ISA said.

The growth in both automotive and consumer durables sectors are expected to slow down to seven per cent each for the next two years from 16% and 22% clocked last year. Intermediate goods, which are driven by both investments and consumption, will see some moderation in demand on account of weaker growth in the automotive sector, said ISA.

"Investment driven sectors such as construction, capital goods and railways are likely to maintain the healthy growth momentum driven by infrastructure programmes such as Bharatmala, Sagarmala, railway track electrification, dedicated freight corridors, metro rails, etc," the statement said.

In addition, while, reduction in GST rates will support the real estate demand, ongoing capacity additions in renewable energy segment would continue to boost the electrical equipment demand, it said. (KNN/JM)