India's Steel Demand Set to Slow ahead of Elections

India's steel demand in FY25 is anticipated to experience a slowdown due to the upcoming general election, potentially affecting government projects and infrastructure spending. Despite a projected growth of 11%-12% in the current year, Fitch Ratings foresees a 9% increase in finished steel consumption in India in FY25. The construction sector, which has been the main driver for India's steel market, is not expected to sustain its growth in 2024. Furthermore, steel imports in India have reached a four-year high, and the steel industry is grappling with higher raw material costs.