Heightened Focus on Infrastructure to Spur Indian Steel Demand

SEATTLE (Scrap Monster): The Union Budget’s increased focus on infrastructure push is likely to spur demand for steel and create new job opportunities, said major Indian steelmakers and industry experts.

The Union Finance Minister had made various announcements to boost basic infrastructure development, including expansion of country’s highway network by 25,000 kilometres in 2022-’23 and mobilizing INR 20,000 crore towards financing the works aimed at improving public resources.

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V.R. Sharma, MD, JSPL said that the increased infrastructure spending will result in tremendous growth, which in turn will boost the demand for steel. Dilip Oommen, CEO, ArcelorMittal Nippon Steel (AMNS) described the budget as a “visionary” budget. He highlighted that the budget envisions a notable 35.4% increase in capital expenditure to INR 7.50 lakh crore.

Anil Chaudhary, Chairman, Minerals and Metals Committee, PHDCCI noted that the Budget is a long-term growth facilitator for the steel industry.

Also, Soma Mondal, Chairman, SAIL said that higher public investment and capital spending by the government coupled with additional focus on the MSME sector will trigger enhanced economic activities , which in turn will augur well for the steel sector.