India steel industry hit by weak demand, high inflation

India steel industry hit by weak demand, high inflation.

India Steel industry has been hit severely by the slowdown in the construction and automobile sector in the country. The high inflationary rates have been the reason for the slowdown in the sector.
The construction and automobile industry has been major consumer of the commodity. Recent policy rate hike by 25 basis points, the 12th in the series since March 2010 has forced the commercial banks to pay more while borrowing from RBI. Inflation in August rose to 9.78%, the highest in 13 months compelling RBI to increase the rate to 8.25%.