Worldsteel forecasts an 8.6% increase in India's steel demand for 2023.

According to a report released on Tuesday by worldsteel, India's steel demand is predicted to grow by a "healthy" 8.6% in 2023 compared to a 1.8% global increase. It predicts that after declining by 3.3% in 2022, the world's steel demand will increase 1.8% and reach 1,814.5 MT in 2023. According to the World Steel Association (worldsteel), the demand will rise by 1.9% to 1,849.1 MT in 2024.

The international organization stated that for India, "after a growth of 9.3 per cent in 2022, steel demand is expected to show healthy growth of 8.6 per cent in 2023 and 7.7 per cent in 2024."

Despite the pressure of a high interest rate environment, the Indian economy is still stable, and the demand for steel is predicted to keep up its rapid growth.

Government spending on infrastructure and a rebound in private investment are the main drivers of growth in India's construction industry. According to Worldsteel's Short Range Outlook (SRO), infrastructure investment will also aid in the growth of the capital goods sector.

The automotive industry will continue to grow steadily. Due to higher inflation and interest rates that limit discretionary spending, the consumer durables sector is the only one that is performing poorly. With holiday spending and advancements in the Production Linked Investment (PLI) schemes, it will, according to the report, improve in 2024.