Steel: Budget may be good

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.