Pointing out that the growth of the steel sector depended on the overall growth of the economy and industrial production, he said the enhanced allocation for infrastructure development, housing, power and highways, proposed in the Union Budget was expected to stimulate the demand for steel. He said the slow growth in the industry last year was because of the sluggish demand for steel, overall economic slow-down and the lack of investment in infrastructure projects by either the government or the private sector.

The minister said dumping of cheap steel, and greater competition from imports in general, following reductions in customs duty were also to blame for slow growth of steel industry.