Long term fundamentals of Indian steel demand remains intact

摘要

Indian steel industry is undergoing a rough patch mirroring the global steel industry. Steel is a global commodity and any mismatch in demand and supply globally also impacts the fortune of Indian steel industry. India's GDP growth decreased to 5% in FY13 (FY12: 6.2%); one of the lowest in the last decade. The GDP growth further declined to 4.6% in lHFYl4.The continuous slowdown in the Indian economy has resulted in reduced steel demand from end user industries like construction, automobile, white goods and capital goods sector. Steel demand for 2014 is expected to be relatively better than 2013 and extent of demand revival would hinge on the measures taken by the government to implement structural reforms to revive the economy.