Steel makers expect GST to push demand for alloy

Steel makers expect the incoming GST regime to put the economy on a high growth trajectory resulting in higher demand for the alloy.
JSW Steel Chairman Sajjan Jindal said the new tax structure will simplify and rationalise the current tax regime, enhance efficiencies and boost competitiveness, and put the Indian economy on a high growth trajectory over the medium term.
This will be supportive for higher demand for steel, Jindal said.
The biggest benefit of this tax reform would be the onboarding of the informal economy onto the mainstream economy and broad basing the tax net, a Tata Steel spokesperson said in a statement.

"However, there are certain transition issues which would require to be sorted out. With regard to the steel industry, GST rates have been largely on the expected line.
"Going forward we expect the GST council would work towards further broadening the scope of GST and bring in sectors excluded from GST in its scope," Tata Steel said.
Jindal also said the Indian steel industry is expected to grow at 5-6 per cent over the medium term.
"The current fiscal's budgetary allocation of Rs 4 trillion by the government for infrastructure, water and gas pipelines, renewable energy and road sector should fuel enhanced economic activity, and as a result, steel demand.