• Domestic demand outlook: Strong growth across construction and all automotive segments (two-wheelers, three-wheelers, four-wheelers, and commercial vehicles) is supporting broad-based momentum across both urban and rural economies.
• Global macro risks: Key concerns include escalating tensions in the Middle East, input cost inflation, and the impact of elevated global interest rates and bond yields.
• Trade barrier strategy: With the US and EU increasingly adopting tariff and non-tariff barriers, India must encourage foreign participants to invest directly in domestic facilities to drive local job creation through coordinated Central and state policies.
• Green steel transition: Faster adoption in Europe is supported by established regulatory frameworks and customer willingness to pay a premium, while scaling greener steel in India will require broader policy support and customer willingness to share higher production costs.