India as a steel bright spot is highly encouraging and is on track to become a top global producer, says an industry body. According to the latest report from BMI Research, demand from construction, automotive and infrastructure industries continues to accelerate.
The report has put down the sector’s success to the government’s push to raise capacity in order to meet demand from construction, automotive and infra sectors, said the Steel Users Federation of India in a statement Saturday. SUFI President Nikunj Turakhia said, “In recent years, the Indian steel industry has showcased a progressive output trend y-o-y,” PTI reported.
Being recognized as a “bright spot” is highly encouraging as well as a large responsibility at the same time, he said, adding that with the introduction new steel and anti-dumping policies, India is on the path to become one of the top steel producers.
The report highlighted Indian steel giants such as Steel Authority of India Ltd and Tata Steel as the major drivers of such growth. BMI Research has forecast India’s steel output to clock an average annual growth of 8.9% during 2017-21, higher than 2.9% in 2012-16.
India’s steel output would grow to 128.6 million tons by 2021 from 88.4 mt in 2017 and the country’s share of global steel production will accelerate to 7.7% in 2021 from 5.4% in 2017, it added.
Ahead of the Goods and Services Tax Council meeting, Turakhia expressed concern over the headwinds faced by the sector. He has also urged the government to relax imposition of GST penalties and prosecution.
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