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Credit rating agency ICRA in its latest report has revised its outlook growth target for domestic steel demand to 9-10 per cent for the current fiscal (FY25) as compared to the earlier estimate of 7-8 per cent, on healthy government spending and demand from steel-consuming sectors. It said the domestic steel consumption registered a growth of 11.3 per cent between February to April 2024.

According to the report, government capex spending was also healthy until February 2024, and other steel-consuming sectors like housing and real estate contributed to the resilient demand thereafter. It said for the last three years, the steel industry has witnessed its fastest period of growth since the global financial crisis.

The report further said that India's finished steel imports increased 38.2 per cent in FY2024 and the country remained a net importer of the commodity. India turned into a net steel importer last fiscal after a gap of five years. Given the weak global growth outlook over the next few quarters, it expects domestic steel imports to rise further by 13-14 per cent in FY2025, leading to the country being a net steel importer in the current fiscal as well.