The development of infrastructure will push steel demand, even though the high input costs of raw material caused recession in Indian steel industry, said Tata Steel chairman Ratan Tata.

Moreover, the local industry didn't increase prices under the stress from government while iron ore prices have risen by 85 percent and coking coal prices by 200 percent since last year.

Steel is the foundation and engine of economic activities, so the Indian demand of steel will continue to grow substantially.