New Delhi: The increased capex on infrastructure in the budget will spur domestic steel demand, attract investments and create job opportunities, industry players and experts said.
Finance Minister Nirmala Sitharaman presented her sixth Budget Thursday in which she announced a Rs 11.11 lakh crore spending on infrastructure among other proposals for sectors like solar and startups.
“This focus on infra will result in robust domestic steel demand, attract investments and create job creation. The coming 5 years will see again the unprecedented growth and development and steel will be a key driver in this development,” Alok Sahay, Secretary General, Indian Steel Association (ISA) told PTI.
Kamdhenu CMD Satish Kumar Agarwal said the budget addressed one of the most important needs of the middle class that is housing. The government’s commitment to build 20 million houses for the poor in the next five years and the announcement of a scheme to help deserving sections of the middle class buy or build their own houses will all contribute to high demand for construction inputs, he added.
Anubhav Kathuria, Director, Synergy Steels said the expansion of PM-Awas Grameen Yojana to 2 crore more houses and the conversion of 40,000 existing railway bogies to Vande-Bharat standards besides the three new railway economic corridors, NaMo Bharat and metro projects are expected to be key drivers for stainless steel demand.
Sandeep Gulati, MD, Egis India, and South Asia said the implementation of major railway corridor programmes under PM Gati Shakti underscores the government’s focus on improving logistics efficiency, which is vital for driving economic growth and competitiveness.
Jayanth Murthy, Joint MD of Consultancy Kaizen Institute said it is likely to witness an increasing demand in the metal, mining and cement sectors generating more employment opportunities. The announcements related to infrastructure will be beneficial as cost-and-time overruns in large infra projects continue to be a challenge.
Lalit Khetan, Whole time director, Ramkrishna Forgings said the budget’s focus on enhancing infrastructure, promoting sustainable transportation solutions, and fostering entrepreneurship bodes well for the growth and development of both the EV and railway sectors in India.
Sapan Gupta, CFO, Rodic Consultants said, “We see the recent budget as a progressive step towards fostering a flourishing ecosystem for infrastructure and digital innovation. The increased capex for infrastructure provides a strategic window for meticulous financial planning for infrastructure businesses.”
Sharat Chandra, CEO, Shirdi Sai Electricals said the one crore rooftop solar projects has the potential to spur not just the domestic photovoltaic module manufacturers and attract sizeable investments but it will also charge the entire electrical manufacturing and supply chain ecosystem.
N Chandran, Chairman, Eastman Exports said the budget reflects the government’s strong commitment to sustainable development and women empowerment.
The renewed focus on higher education of women, especially in STEM subjects, is great significance as they constitute around 70 per cent of the workforce in the textile industry, he added.
Jindal Stainless MD Abhyuday Jindal said the introduction of India-Middle East-Europe- Economic Corridor is a strategic move with potential trade expansion and strengthened economic ties.
Initiatives empowering youth through skilling, entrepreneurship support, and strengthening educational infrastructure contribute to the shared vision for a prosperous, sustainable future.
PTI