India's Steel Demand Expected to Soar by 2034: Deloitte Report

A Deloitte report forecasts India's steel demand to grow at a CAGR of 5-7.3% over the next decade, reaching 221-275 million tonnes by FY34. Key states like Maharashtra and Tamil Nadu will drive consumption, propelled by government infrastructure projects and the rise of electric vehicles and food processing industries.

A new Deloitte report forecasts a significant rise in India's steel demand, predicting a compound annual growth rate (CAGR) of 5 to 7.3 percent over the next decade, potentially reaching 221 to 275 million tonnes by FY34. The report was released at the ISA Steel InfraBuild Summit on Friday.

Key states such as Maharashtra, Uttar Pradesh, Gujarat, Karnataka, and Tamil Nadu are projected to lead in steel consumption, accounting for 41 percent of total usage in FY23. This surge is primarily driven by government spending on infrastructure projects, including the development of 11 industrial corridors under the PM Gatishakti National Master Plan, which will significantly boost steel demand.

In Telangana, steel consumption grew 15.75 percent year-on-year in FY23, surpassing the national average. Additionally, Tamil Nadu's growing electric vehicle and food processing industries are expected to further drive demand for various types of steel, setting the stage for robust economic growth across multiple sectors.

(Disclaimer: With inputs from agencies.)