There are upsides for steel: TV Narendran

Union Finance Minister, Arun Jaitley, has tried to do a balancing act between fiscal consolidation and growth in the midst of global headwinds.

The Budget focuses on policy and taxation reforms, and reflects the government's commitment to improving the ease of doing business in India. The emphasis on tax reforms and dispute resolution schemes should go a long way in creating a facilitating environment for conducting business in India.

We are the world's third largest producer of crude steel (up from eighth in 2003) and the world's third largest consumer of finished steel. This sector should get a big boost from the proposed spending in infrastructure; the Budget proposals will help the industry reach its full potential.

However, doubling of the clean energy cess from Rs 200 to Rs 400 a tonne would increase input costs for domestic producers. We are hopeful the government will focus on the goods and services tax (GST) Bill and include the suggestions made by the Central Electricity Authority panel. The steel industry is a significant contributor to India's economic growth and it is important that it be brought under the ambit of GST.

TV Narendran
Managing Director, Tata Steel