Jan 17 (LTIT) –The World Steel Association (worldsteel) projects India as one of the few bright spots for the global steel industry. The country is likely to witness fast growth in steel demand, which in turn will boost domestic steel production. The Indian steel industry has recovered from the twin shocks of demonetization and GST-the unified tax system, worldsteel said.

The Indian crude steel production until November in 2018 totaled 96.923 million tonnes (Mt). This is higher when compared with the production of 92.388 Mt in Jan-Nov ’17. The country overtook Japan to emerge as the world’s second largest steel producer for the second consecutive month in December.

According to worldsteel, India’s apparent per capita usage of finished steel products at 66.2 kg in 2017 is way below the world average of 212.3 kg. This suggests immense potential for steel demand growth in the country.

The ongoing reform process to clear institutional bottlenecks and ongoing push for infrastructure development projects is likely to drive Indian steel demand. The recent study carried out by the Association in collaboration with the Indian Steel Association (ISA) points out that construction sector will emerge as the single largest driver of steel use in the country, backed by robust infrastructure development projects such as industrial corridors and smart cities. The rising housing demand in the country will also contribute to steel demand growth.