Business Line reported that Mr HM Nerurkar MD of TATA Steel said that in 2013-14,steel demand in India is expected to be higher at around 7%.

He told Business Line"Reforms announced by the Government will provide a fillip to growth in the economy.With the general expectation of modest growth globally and sustained raw material prices,we expect steel prices to firm up and be stable in the year ahead."

He said"The formation of the Cabinet Committee on Infrastructure for single window clearance for mega projects will generate activity in the power and road sectors."

In addition,Mr Nerurkar said the expected lowering of interest rates by Reserve Bank of India in January will provide impetus to the manufacturing and consumer durables sectors.

He also said"The main factors impacting growth in India are the inflationary pressure,the fiscal deficit,lower demand from consuming sectors such as automotive,construction,capital goods and consumer durables,and,the problem of capital inflow.There are delays in obtaining clearances,especially environmental clearances,land acquisition,overdue reforms."

In the financial year 2012-13,growth in domestic steel demand is expected be around 5½%to be about 75 million tonnes,up from 71 million tonnes in 2011-12.