"Going forward we have the potential of domestic steel demand growing at 10-11 per cent for another three years consequently if nothing extraordinary happens. But in normal circumstances I would expect that," Joint Plant Committee(JPC) Chief Economist A S Firoz told PTI.
Domestic steel demand grew at 8 per cent in the first quarter of 2018-19, he said.
"Given the kind of movement that is happening in the industries which consume steel, given the kind of momentum that has been built up in the construction industry...all this will raise steel demand significantly," he said.
However he said there are few constraints to steel production.
"One kind of constraints is that we may not have the kind of products that are in demand, there might not be domestic capacity. So when you don't have domestic capacity, you have a problem of meeting those demands. Imports will come in," he said.
World Steel Association had earlier said that in India, steel demand is expected to accelerate gradually, mainly driven by public investment.
Empowered by Ministry of Steel, JPC is the only institution which collects data on the Indian iron and steel industry.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)