MUMBAI: JSW Steel expects domestic steel demand to grow by about 6 per cent in 2016-17, adding that the long-term outlook for the sector continues to be bright.
"Despite temporary challenges, country's long-term outlook for steel sector continues to be bright. India's steel sector has now risen to be the third-largest producer of crude steel in the world and we expect the domestic steel demand to grow by about six per cent in FY17," JSW Steel Chairman and Managing Director Sajjan Jindal said in the company's annual report.
He also said that the government is aiming to scale up the country's steel production to 300 million tonnes by 2025.
Despite multiple headwinds, the country produced 89. 8 million tonnes (MT) crude steel in 2015-16, an increase of 0.9 per cent. In FY16, the country consumed 80.5 MT of finished steel, registering a growth of 4. 5 per cent.
Jindal pointed out that recent government measures are expected to boost the steel industry's growth.
The Ministry of Steel is facilitating setting up of an industry-driven Steel Research and Technology Mission of India (SRTMI) in association with public and private sector steel companies to spearhead R&D activities in the iron and steel industry with an initial corpus of Rs 200 crore.
Government also plans to auction eight coal blocks with reserves of 1,143 MT to steel and cement firms.