The stagnant demand scenario of the Indian steel sector is likely to come to an end with the new Government putting thrust on areas like manufacturing and infrastructure, SAIl Chairman C S Verma said on Tuesday.
Addressing shareholders at the company's annual general meeting (AGM), Verma said, "We witnessed another year of sub 5 per cent GDP growth in fiscal 2013-14. However, a new era of hope, change and confidence has dawned on the country."
The signs of change to come were already reflected in the General Budget presented by new government with announcement of initiatives such as opening up of more sectors for Foreign Direct Investment, plans to accelerate growth in manufacturing and facilitating investments.
Besides, the government has its focus on infrastructure like development of smart cities, ports, power plants, plan for doubling the pipeline grid, metro for tier-II cities, industrial corridors, incentives for housing and revival of Special Economic Zones.
"These initiatives augur very well for the Indian steel industry, and we are confident that good growth would be witnessed in domestic steel consumption in the coming years, bringing an end to the stagnant demand scenario," Verma said.
India's steel consumption grew by just 0.6 per cent last fiscal, its lowest in four years, to 73.93 MT, mainly impacted by a slower expansion of domestic economy.