Union Minister for Steel and Heavy Industries, HD Kumaraswamy, has highlighted the positive impact of the Budget on the steel sector. The Budget focuses on infrastructure investments, export facilitation, and direct incentives to boost both domestic production and consumption. Kumaraswamy emphasized that the Budget aims to encourage fresh investments in the sector to improve global competitiveness and create significant employment opportunities.
The Minister mentioned that the Budget’s emphasis on infrastructure aligns with PM Narendra Modi’s vision of enhancing domestic manufacturing and positioning India as a global leader in steel production. He added that steps will be taken to strengthen India’s domestic supply chain, benefiting industries such as shipbuilding, defense, heavy machinery, automobiles, and railways.
Kumaraswamy continues to advocate for value-added steel production in India, believing that strengthening India’s role in global supply chains will increase demand for high-grade, specialty, and value-added steel exports. He expressed optimism about the launch of BharatTradeNet (BTN) simplifying export documentation and streamlining trade processes for Indian steel manufacturers to compete in international markets.
The Minister highlighted the strong triggers in the Budget that could lead to greater demand for steel-based structures, including the ₹25,000 crore shipbuilding cluster and maritime fund, a ₹1 lakh crore Urban Challenge Fund, and a ₹1.5 lakh crore allocation to state governments for capital expenditure. These initiatives will fuel infrastructural development, requiring high steel consumption.
Industry experts, including Dilip Oomen, CEO of AMNS India, anticipate benefits for the sector from indigenous shipbuilding and marine development projects. The improved credit availability for MSMEs will enable businesses in the construction and manufacturing sectors to access financing.
While no major changes in duty structures across steel products were proposed in the Budget, there is ongoing scrutiny of lower-priced imports that could necessitate safeguard measures. Domestic steel consumption has remained stable, but prices have been impacted by increased imports from China and declining exports to key markets like Europe.
Overall, the steel sector is optimistic about the Budget’s proposals and expects a boost in demand. The Budget’s initiatives are geared towards enhancing the competitiveness of the steel industry and promoting its growth in the global market.
