Steel Demand to Normalise by October, Fueled by Infrastructure Push

Steel demand in India is expected to regain momentum by October, with industry leaders projecting robust double-digit growth in the second half of 2025. Naveen Jindal, Chairman of Jindal Steel and President of the Indian Steel Association, has expressed confidence that downstream activity will drive the revival, supported by recent government policy measures.

According to Jindal, the reduction of Goods and Services Tax (GST) on cement to 18 percent, along with tax cuts in the automobile sector, will provide a significant boost to both construction and infrastructure development. These sectors, which together account for the lion’s share of steel consumption, are poised to accelerate demand as large-scale projects pick up pace in the latter half of the year.

The government’s infrastructure pipeline—ranging from highways and railways to housing and energy—remains a cornerstone of steel consumption. With major urban expansion projects and industrial corridors progressing steadily, the industry anticipates a steady offtake of long and flat steel products. The automobile sector, buoyed by reduced levies, is also expected to play a vital role by spurring demand for specialised steels used in manufacturing.

Jindal emphasised that the cyclical slowdown seen earlier in the year was temporary, caused by sluggish construction activity and muted investment sentiment. However, with policy interventions now in place and financing for infrastructure projects easing, the outlook for the steel sector has strengthened considerably.

Industry observers note that a revival in steel demand will not only aid producers but also have a cascading impact across allied industries, including logistics, mining, and heavy machinery. As India moves into the final quarter of the year, stakeholders are optimistic that the sector will benefit from strong infrastructure momentum and supportive government policies, positioning steel firmly at the heart of the nation’s economic growth story.