Recent reports from international media indicate that the current slowdown in the economy is causing steel mills in India to delay plans to expand their production capacities. In the meantime, the Indian government is delaying the approval of new projects, which will make it difficult for India’s steel industry to meet the targets for steel capacity growth that were previously set in the “12th five year plan.” According to the “twelve five” plan (2012-2017) developed by the Indian government, the country’s capacity for producing steel would expand from its present level of 90 million tons to 142.3 million tons in 2017. A securities analyst in India said that it is abundantly evident that India would not be able to meet its steel production capacity objectives of 142 million tons in 2017. It is projected that India’s steel production capacity can’t surpass 100 million tons to 1.05 million tons since the great majority of its domestic steel producers have put off expanding their production capacities. The necessary papers for India’s “twelfth five-year plan” state that with India’s gross domestic product (GDP) to sustain growth of 9 percent, it is anticipated that steel consumption would expand by 10.3 percent; thus, the 2017 indian steel production goal is set at 142.3 million tons. India-related sector sources indicated that the objective is definitely high since this data is formed on continuous GDP growth of 8% in the basis. This means that the target is more ambitious than it really is. According to rao, the senior economist of India Commercial Bank, the average growth rate of India’s gross domestic product is predicted to be 6% over the next three years. India’s steel production capacity development has shown symptoms of slowdown, which may be attributed to delays in the approval of steel building project applications, as well as applications for environmental permits and the influence of other adverse circumstances. According to the analyst who presented themselves, other indian steel businesses, including tata steel, jsw steel, and the steel authority of india, are also experiencing the issue of delays and postponements. Notwithstanding the fact that India’s steel firms have declared before the “twelfth five” a boost of 71 million tons of steel production capacity, this will be the uncertainty of future production capacity owing to the absence of project delays or regulatory permissions. It’s possible that Indian steel prices may go up. The price of steel in the future is expected to rise primarily for the following reasons: first, the Indian government recently gave its approval to a number of infrastructure projects that would lead to an increase in the country’s demand for steel in the coming months. Second, an Indian state-owned bank said in October that it will reduce the interest rate on automobile loans by 0.20 percentage points. Currently, the interest rate on loans for the purchase of a new vehicle is between 10.45 and 10.75 percent. The biggest automobile manufacturer in India, Maruti Suzuki India, said that their sales of automobiles in the month of October increased by 1.91 percent, hitting 105,087 units. According to the study, sales are expected to continue to improve over the next few months. Third, the government of India has invested 140 billion rupees into state-owned banks. This would encourage banks to lend over the next festival season, which will push customers to purchase consumer durables and automobiles. Now that the rainy season in India is over, there will be an uptick in the number of new development projects. If you are looking for a provider of high-quality carbon steel pipe, erw steel pipe, or steel section in China, go no further than ontrend industrial limited. If you have any requirement, please do not hesitate to visit our website.

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