Government infrastructure spending is expected to be a major growth driver in the coming decade. The development of 11 industrial corridors, encompassing 32 projects in four phases under the PM Gatishakti National Master Plan, is identified as a significant factor for increased steel consumption.
From FY14 to FY24, India's finished steel consumption grew at a CAGR of 5.67 percent, reaching 136 million tonnes in FY24. This represents over 14 percent year-on-year growth, fueled by ongoing development projects and increased government expenditure across various sectors.
The steel industry is particularly vital to Telangana's economy. The state saw a 15.75 percent year-on-year increase in steel consumption, rising from 4.730 million tonnes in FY22 to 5.475 million tonnes in FY23, surpassing the national growth rate. Telangana’s per capita steel consumption was 156.43 kg in FY23, significantly higher than the national average of 93.4 kg, highlighting the state's strong industrial activity and its importance in driving future economic growth.
Additionally, the report notes that the growing electric vehicle market in Tamil Nadu will boost demand for electrical steel, while the expanding food processing industry will increase the need for stainless steel.
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