Business Standard reported that TATA Steel expects the metal's consumption in India to grow by about 5% to 75 million tonne in 2014-15 on hopes that the economy will kick start once the new government is in place after the general elections results are out next week.

Mr Peeyush Gupta VP, Marketing & Sales of TATA Steel said that "We expect the economy to kick start post the new Government. Fundamentals of the economy remain strong and the need for infrastructure creation is stronger."

He said that "Consequently, we expect robust improvement in investment led demand in FY15 and steel consumption should touch 75 million tonne, a growth of 4.5% to 5% over FY' 2014."

Mr Gupta said in the company's newsletter posted on the website that projections for long term growth continue to be bullish and the country will gear itself to touch 125 million tonne by 2020 and 175 million tonne by 2025.

He also projected rural consumption to grow as the economy improves. India's per capita steel consumption is 58 kilogram as against world average of 250 kilogram while rural India consumes only 14 kilogram per capita.

Mr Gupta further said that as the economy matures, rate of urbanisation improves, and this gets reflected in increased steel usage in construction and in consumables. Therefore, steel demand will get a major boost from increased RCC housing type construction and conversion of thatched and sand tile roofs to various types of steel roofing

He said that the other significant action is from the government to drive inclusive growth, as enumerated in the 12th Five Year Plan, with the launch of schemes like MGNREGA, Sarva Shiksha Abhiyan and Bharat Nirman. With the improvement in income levels and direct support to pukka housing, steel companies have a good prospect in rural India.