Budget Boost: Steel Sector Set to Thrive Amid Tax Cuts and Capex Push

The steel sector is expected to benefit from significant direct tax reductions and increased capex spending. The focus on middle-class empowerment, public-private partnerships, and renewable energy is set to drive growth. Key players in the industry highlight the positive impact on consumption, core sectors, and green transformation.

The Indian Steel Association (ISA) forecasts bright prospects for the steel industry following a significant reduction in direct taxes. The shift in fiscal policy aims to boost the middle class's purchasing power, subsequently benefiting consuming sectors such as the auto and consumer goods industries, which collectively account for 15% of steel consumption.

Notable industry leaders, including Naveen Jindal of Jindal Steel and Power Ltd and Sajjan Jindal from JSW Group, underscore the positive implications of the government's capex focus, despite the lower-than-expected allocation of Rs 11.2 lakh crore. The continued emphasis on shipbuilding clusters and maritime development is poised to reduce Export-Import logistics costs.

Additionally, Amitava Mukherjee of NMDC and Dilip Oommen of ArcelorMittal Nippon Steel India suggest that budgetary emphasis on public-private partnerships and renewable energy signifies a pivotal shift towards domestic growth and green energy transition, delineating a strategic path towards sustainable industry practices.

(With inputs from agencies.)