The ongoing conflict between Ukraine and Russia will burden domestic steelmakers with high input costs, according to rating agency Icra.
However, the tension between the countries provides exports opportunities to the Indian steel players, the rating agency said in a statement on Monday.
"Russia-Ukraine conflict to heighten input cost pressures, but also open up export opportunities for Indian steel companies. Sanctions on Russia could open new export opportunities for Indian steel mills in geographies like Europe, the Middle East and the USA, which could face supply shortages in the near term," it said.
Notwithstanding the input cost pressures, the industry earnings are expected to remain healthy in the next 12 months and its outlook for the industry remains positive, Icra further said.