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The consumption and import of steel in India may rise in the coming year

The Indian national rating Agency ICRA has made their predictions. According to his estimates, the volume of consumption of steel products will rise. There is a mind in India. The growth rate can reach 7% per year. Such a prediction is made on the following two fiscal years. According to experts, the increase can be explained by several important reasons. First of all, increased public investment in affordable housing. Thus, we will begin active construction of new facilities.

Also, the government intends to Finance the construction of new power lines. It took a long time and will be implemented in the coming years. In addition, there are a number of major infrastructure projects. Their implementation will also be allocated funds from the state Treasury. There is another significant source of demand for rental. We are talking about railway construction.

Steel imports will expand not only because of rising demand. The main reason is the reduction in exports. It is known that the world has seen protectionist tendencies. They started last year after the introduction of us steel tariffs. Followed by import restrictions in the European Union. Because of the Indian suppliers will rely on local consumers. The more that the world prices for steel products declined substantially. In addition, Indian companies are finding it difficult to compete on the world market. The reason for this is high raw material costs. However, domestic demand saves their position. Its growth will help to keep businesses afloat. Moreover, it can be even more profitable than to export products. Have in mind that significantly reduced transportation costs.

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