Assocham Calls for Budget Incentives to Reinvent Indian Steel Industry

Assocham is urging the government to provide incentives in the upcoming Union Budget to aid the steel sector in transitioning to low-carbon production, addressing high input costs, and investing in recycling infrastructure. The industry body suggests measures to position India as a global steel manufacturing hub.

India's steel industry faces mounting pressures ahead of the Union Budget, with Assocham urging government support for low-carbon initiatives. These recommendations include hydrogen-based iron production and green finance for the sector.

Finance Minister Nirmala Sitharaman will present the budget on February 1, 2025, which Assocham views as a chance to advance the steel industry under the 'Make in India' initiative. The industry body suggests incentives for waste-heat recovery, renewable power plants, and scrap recycling to reduce reliance on imports.

Rising input costs and supply issues underscore the sector's challenges. Assocham proposes removing import duty on raw materials and rationalizing royalty calculations to boost domestic production and global competitiveness.

(With inputs from agencies.)