India’s Finance Minister Ms Nirmala Sitharaman made a slew of proposals while presenting the Union Budget 2023, including capital outlay of INR 2.04 lakh crore for Indian Railways, 50 new airports, helipads, water aerodromes, and advanced landing grounds for improving regional air connectivity, 100 critical transport infrastructure projects for last- and first-mile connectivity for ports, coal, steel, fertilizer and food grain sectors etc, that can benefit India’s steel sector.

Indian Steel Association President and CEO of AM/NS India and Executive Vice President of ArcelorMittal Mr Dilip Oommen has said that “A progressive ‘Saptarishi’ Budget, the first in Amrit Kaal, has hit the right notes to fuel growth across industries and propel India to become a global manufacturing hub. A significant 33% increase in capital expenditure to INR 10 lakh crore, 3.3 % of the GDP, thrust to fast-track infrastructure development, and the highest ever INR 2.40 lakh crore for railways will translate into robust domestic steel demand, thus spurring private investments and job creations. First and last-mile connectivity for sectors like steel, ports, coal, etc. with an investment of INR 75,000 crore will improve logistics efficiency. This Budget is focused on growth and improving consumption. At the same time, there is a focus on the green economy and digitalization. Reforms are on the right trajectory of fiscal consolidation to reach the targeted fiscal deficit level below 4.5% by 2025-26. The Budget underpins a long-term plan that shows the right path to drive economic revival at a time when advanced economies are facing a tough time.”

Tata Steel MD & CEO Mr TV Narendran said “The finance minister has presented a high-quality budget that focuses on increasing capital expenditure to build infrastructure while at the same time not compromising on the fiscal discipline that is so essential in an era of rising interest rates. The finance minister has also taken multiple actions to support the agriculture sector and the rural economy. The focus on health expenditure also assuages concerns of the underprivileged sections of the society about unplanned medical expenditure. There is also a more holistic focus on logistics with significant investments in the Railways as well as proposed work on coastal shipping. The budget also assigns resources for the long-term and important transition to a greener future. The support to the tourism sector and to MSME’s were also much needed as these sectors suffered the most during covid. Overall a very comprehensive budget which has something for everyone.”

A quick search of Budget Highlights shows that Ms Sitaraman, except to facilitate availability of raw materials for the steel sector, exemption from Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued, did not include any suggestions from the long wish list of Indian steel industry, which had included

1. Safeguard Duty of up to 25% on HR coil, sheets and plates as well as color coated and wire rods

2. Increase in basic customs duty to 12.5%for all steel products including semis, flats and longs

3. Inclusion of import of steel products in quality control order

4. Import of all non-prime steel products to be restricted to select ports for 100% testing and inspectionMumbai, February 01, 2023

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