In India, steel consumption is growing at 10 percent a year that is the word coming from TV Narendran, the Managing Director and Chief Executive Officer of Tata Steel.

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Speaking to CNBC-TV18's Parikshit Luthra, Narendran shed light on the factors driving this remarkable growth and its implications for both the domestic and international steel markets.

Narendran emphasised the significance of this growth, stating, "India's steel consumption is currently growing at about 10 percent a year, which is very good and the way it should be. Normally, in developing countries, steel consumption needs to outpace GDP growth, and India is currently experiencing such a phase. This is not surprising, given the considerable emphasis on infrastructure development in the country."

The CEO went on to elaborate on the reasons behind India's strong steel demand. "In India, the demand for steel is robust across various sectors. Even with limited steel exports, domestic capacities are being fully utilised. This, in turn, is driving up prices, and I anticipate that this trend will persist," Narendran stated.

Further, contributing to the rising steel prices are the escalating input costs. Narendran pointed out, "Input costs are on the rise. Coal prices have increased by approximately $70 in recent weeks, and iron ore prices remain high. These cost pressures are exerting upward pressure on steel prices."

While India's steel industry is witnessing a remarkable growth trajectory, the international steel market presents a mixed picture. Narendran highlighted the challenges and opportunities in global markets. "Internationally, the situation remains somewhat fragile. China has yet to fully recover from the COVID-19 pandemic, Europe is still on shaky ground, while the United States appears more resilient. The performance of international markets will undoubtedly influence the steel industry's outlook, but I expect the second half of the year to be better than the first."

Narendran also shared insights into Tata Steel's resolution with the UK government, addressing long-standing issues related to the company's competitiveness in the UK. He explained, "This resolution focuses on addressing the lack of competitiveness in our UK operations due to legacy issues. By adopting a new process that leverages the availability of steel scrap in the UK, we are fundamentally enhancing Tata Steel's competitive position in the UK. This not only ensures the sustainability of our business from a financial perspective but also significantly reduces our carbon footprint."

Highlighting the UK government's support for this initiative, Narendran stated, "The UK government recognises the importance of this step in reducing the carbon footprint of the industry in the UK. Tata Steel plays a pivotal role in the industrial value chain in the UK, making this a critical move for both the company and the nation."

Tata Steel is in focus after Moody's upgraded the stock to investment grade with Baa3 issuer rating.