India approves measures for reviving the construction sector, which will indirectly increase the demand of long steel products like rebar, rail and structures, wires, pipes over the long-term.
Construction and infrastructure sector are the major driver of steel consumption in India accounting for 60pc of total steel consumption. Out of the total steel consumption, infrastructure sector alone accounts for 9pc and is expected to increase by 11pc by 2025-26.
The Indian government has made a long-term investment outlay of Rs100 crore in infrastructure by 2024-25 which will drive the growth of steel consumption. India is working out measures to infuse liquidity into the construction sector. Given the significant multiplier effect the construction sector has on the economy, these are expected to give a major boost to economic growth. Also, steel sector contributes over 2pc to the nation’s GDP growth.