H M Nerurkar, Managing Director, Tata Steel Limited
The overall performance of the steel sector is ‘optimistic.’ In the fiscal 2012-2013, growth in domestic steel demand is expected to be around five and a half per cent. The total demand is expected to be around 75 million tonnes, up from 71 million tonnes in 2011-2012.
Growth Factor: In 2013-14, demand is expected to be higher at around 7 per cent. Reforms announced by the government will provide a fillip to growth in the economy. In Europe, we expect a modest growth against the backdrop of a negative groÂwth this year.
The formation of the cabinet committee on infrasÂtructure for single window clearance for mega projects will generate activity in the power and roaÂdÂÂwÂays secÂtors, among others.
The expected lowering of interest rates by RBI in January will provide impetus to the manufacturing and consumer durables sectors, among others. The full imÂpact of all these will be felt in 2013-14.
Moreover, with the ongoing Greenfield and Brownfield expansions, India is expected to become the worldÂ’s second largest producer of crude steel in the next two years.
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