Mixed Tata outlook on steel

Mumbai : The spectre of a slowdown that has started to hover over the Indian economy — a direct fallout of the Reserve Bank of India’s surprise decision last week to raise its key policy rate by 50 basis points to 8 per cent — will not crimp demand for steel in the country, Tata Steel chairman Ratan Tata said here today.

However, the prevailing economic situation in Europe could pose a “challenge” for the Rs 1,18,753-crore steel giant, Tata told shareholders at the company’s 104th annual general meeting today.

Tata gave a cautiously optimistic assessment of Tata Steel’s global operations, tethering his faith to the fact that basic industries in every country would need steel as no other material can replace it. Demand for steel will rise irrespective of the different growth rates in various economies, he said.