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Rating agency Icra has said that it has revised upwards its growth estimate for the domestic steel industry to 9-10 per cent this fiscal (FY24), on account of the robust government capital expenditure. It had estimated the steel industry to grow in the range of 7-8 per cent at the start of the current 2023-24 fiscal.

It stated that powered by the government's infrastructure-oriented growth model, the domestic steel demand has been growing in double digits since FY22, and the momentum has continued in the current fiscal as well. Steel demand registered a growth of 13.1 per cent between April and August this fiscal.

Jayanta Roy, Senior Vice-President and Group Head of Corporate Sector Ratings, Icra said ‘Around 14.3 million tonne per annum (MTPA) of new steelmaking capacity is expected to come on stream in the current fiscal. This will be the largest capacity addition made by the industry in a single year in the recent past. The industry's supply pipeline is expected to remain strong in FY25 as well when an estimated 12.3 MTPA of capacities are lined up for commissioning.