BUSINESS

Steel: Budget may be good

February 24, 2005 06:57 IST

Being a core sector, steel industry tracks the overall economic growth in the long-term.

Also, steel demand, being derived from other sectors like automobiles, consumer durables and infrastructure, its fortune is dependent on the growth of these user

industries. India has a per capita consumption of steel of around 30 kgs as against 180 kgs in China and an average of over 400 kgs in the developed countries.

This wide gap in relative steel consumption indicates that the potential ahead for India to raise its steel consumption is high.