According to the Indian Steel Association,India's steel demand is expected to maintain an annual growth rate of more than7% in 2019 and 2020, driven by industries such as construction, capital goodsand railways. The Indian Iron and Steel Association predicts that Indian steeldemand will increase by 7.1% and 7.2% in 2019 and 2020, respectively. Thereport also predicts that India's steel consumption in 2019 may exceed 100million tons.

The Steel Association also said thatinvestment-driven industries such as construction, capital goods and railwaysare expected to continue the healthy growth momentum driven by infrastructureprojects such as Bharatmala, Sagarmala, railway electrification, dedicatedfreight lanes and subways. In addition, while the reduction in Goods andServices Tax (GST) will support real estate demand, the continued increase incapacity in the renewable energy sector will continue to boost demand for powerequipment.