Indian base metals industry is expected to grow by 8-10 percent annually over the next three years on the back of increased demand from power, construction and automotive sectors, rating agency Moody's said.
"We expect India's consumption of base metals to increase by 8-10 percent annually over the next three years, driven primarily by demand from three sectors, power, construction and automotive," Moody's Vice President - Senior Credit Officer Alan Greene said here.
"Our projections reflect domestic GDP growth -- forecast at 7.5 percent in fiscal year 2016 and 7.6 percent in fiscal 2017 -- and the government's efforts to boost infrastructure spending," he added.
According to Moody's, domestic installed capacity for all three base metals - aluminium, copper and zinc - is sufficient to meet demand growth, having grown sharply over the past decade. However, aluminium sector will become oversupplied as large expansion projects come online over the next three years.