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 [Ferro-Alloys.com] The prolonged slump in the Indian domestic automobile industry has impacted the steel sector, Tata Steel CEO and MD T V Narendran said on Thursday.

The demand for steel in India has to pick up and that depends a lot on construction and automobile sectors, he added.

"I think steel touches all parts of the economy...It is 20 per cent of the steel that gets consumed in auto and that has an impact. That is certainly something that has played out over the last three months," said Narendran.

While auto industry has its own challenges, the government can do a lot in construction and infrastructure segments, but the rest depends on private capital and residential demand, he added.

"They (automobile industry) had a separate sitting with the (finance) minister yesterday (Wednesday)... So as far as international market is concerned, things are bit soft. The problem is less about international steel flows and more about domestic demand," Narendran said. （economictimes.indiatimes）

• [Editor:kangmingfei]