Budget 2024: Steel makers expect continued focus on infra spend, import-checking measures

New Delhi: Steel makers expect continued focus on the infrastructure spending, push to domestic manufacturing, and measures to check rising imports in the upcoming 2024-25 Union Budget.

In the 2023-24 Budget, Union Finance Minister Nirmala Sitharaman announced a capex of Rs 10 lakh crore for infrastructure development.

"The government should continue the focus on increasing the spend on infrastructure. It should also work on further improving the cost of doing business and the ease of doing business," Tata Steel CEO & MD T V Narendran told PTI.

The industry also expects the government to take some measures to check rising imports as dumping of steel in India can hurt the profitability of players and the investment plans of the steel industry, he said.

Dilip Oommen, CEO, ArcelorMittal Nippon Steel India, said the industry expects the Budget to reflect the government's continued dedication to economic growth.

"We urge a stronger focus on fair trade policies such as anti-dumping measures, raw material security, infrastructure investment, competitive financial ecosystem, R&D incentives, export promotion, skill development, and environmental sustainability," Oommen said.

Rationalising the taxation on key inputs like natural gas, coking coal, electricity, and iron ore can help the Indian steel industry to be more sustainable.

Further push to domestic manufacturing will not only provide a clear advantage to attract investment and create jobs but also make India globally competitive in the long run to emerge as a viable alternative to China, he said.

For the stainless steel industry, Anubhav Kathuria, Director of Synergy Steels, said at present, certain critical raw materials are not easily available in the country and duties on their imports add to the cost of production.

"In this regard, a feasible reduction in the import duty of 2.5 per cent on ferro nickel, 7.5 per cent on graphite electrodes, and 5 per cent on molybdenum concentrate and ferro molybdenum can be considered in the Budget."

The move will help enhance the cost-competitiveness of the domestic industry's finished products, he said, adding, "ensuring raw material security is a key priority for the stainless steel sector."