Construction Industry News
ICRA has updated its forecast for domestic steel demand to 7-8% for the next budget. Originally, the rating agency predicted that demand would increase by 6% to 7%. According to a study by ICRA, with central government capex spending in FY 2024, ICRA has revised its estimate of steel consumption growth for FY 2024 upwards from 6-7% to 7-8%. Budgeted capital expenditure for 2023-2024 is expected to be rs 10 trillion, representing 3.3% of GDP.
The government's drive for infrastructure-led economic growth has continued to drive domestic steel consumption growth, which has been solid throughout the current financial year. "With an expected growth in steel consumption in high single-digit figures next year, we expect the sector's capacity utilization rate to improve to around 80 percent in FY 2024, despite the commissioning of some new expansion projects," Jayanta Roy, Senior Vice-President & Group Head – Corporate Sector Ratings at ICRA, said of the forecast. Between April and February of FY23, 107.20 million tonnes of finished steel were consumed in India.
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