BL cited Mr HM Nerurkar MD of TATA Steel as saying that TATA Steel Ltd expects the India’s steel demand to grow at 8% in the current financial year.

He said that “Based on the GDP growth forecast of 7%, the normal demand for steel should be around 9%. However, going by the pace of investments in infrastructure projects last year, we expect growth in steel demand at around 8%.”

Mr Nerurkar said that the company plans to produce about one million tonne more steel this year to around 8 million tonne on expanded capacity at Jamshedpur.

Consumption grew at a sluggish pace in 2011-12 on slower investments in construction, infrastructure and reduced off take from consumer durables and automotive segment.

Source - Business Line

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