Business Today reported that impacted by the economic slowdown, India's steel consumption grew by merely 0.4% to 48.291 million tonne during the April to November period of the current fiscal. According to the Joint Plant Committee, a body under the Steel Ministry, a sharp decline in imports also led to the fall in consumption.

The consumption of finished steel, a key indicator of the health of an economy, was at 48.09 million tonne in the first 8 months of the last fiscal 2012 to 13. The Indian economy grew by 4.8% during the July to September quarter.

The GDP growth hit a decadal low of 5% in 2012 to 13 on account of poor performance in the farm, manufacturing and mining sectors.

India's real consumption of total finished steel was impacted by slowdown in the domestic economy and a sharp decline in imports during this period which the 5.3% rise in production for sale could not offset but on hindsight, the same appears to have checked real consumption growth.

Production for sale of total finished steel at 53.398 million tonne registered a growth of 5.3% during April to November, encouraged by a 10.7% growth in the case of main producers.

JPC said that “India is the world's fourth largest steel maker. Import of total finished steel showed downward trend, declining by 28.3% YoY in April to November at 3.656 million tonne.”

It was impacted by factors like slowdown in the domestic economy, exchange rate volatility, relative prices, global downswing and bilateral agreements among others. Export of finished steel was up 6.9% during the period at 3.53 million tonne driven by different economic conditions, impact of global downswing and depressed domestic demand.

Real consumption of total finished steel grew by 0.6% in November 2013 at 5.942 million tonne discouraged by a moderate 4.3% growth in production for sale a 60% fall in imports and a 26.6% rise in exports.