India to equal world per capita steel consumption in 10 years.

NEW DELHI: A sustained government spending on infrastructure like roads, railways, power and housing will propel India into the league of top global steel consuming nations in the next 10 years, a top official of domestic steel giant SAIL has said.

"If you look at the massive infrastructure push by the government, even going by conservative estimates, steel demand will grow a lot. India will equal the global per capita consumption in 10 years," SAIL Chairman P K Singh told pti.

Per capita steel consumption in India, the world's third largest producer of the metal, stood at 59.4 kg per person in 2014, against a global average of 216.6 kg, data from industry body World Steel Association showed.

The chief of India's largest steel producer added the country is at a "take-off stage" and all the "requisite ingredients" are in place, only a little push from the government was needed, which is now on its way.

"Look at the road sector, more highways are being built, which means more steel will be used. Similarly, in Railways more tracks are to be laid and we expect a huge jump in spending there. Power sector is also expanding, which again will boost demand for the metal," Singh said.

According to him, the government's 'Housing for all' is a novel initiative that will give impetus to steel demand. In automobiles too, demand is rising for commercial vehicles as well as passenger cars which will further aid steel sector.

Source : economictimes.indiatimes.com