Rising commodity prices risk raising costs for India's infra plans

Commodity super-cycle may upset plans for national infrastructure pipeline, raise expenses for Railways

Inflation will likely hurt as commodity prices rise. The wholesale price index for basic metals and manufacturing has been mimicking metal prices. Rising commodity prices will hurt India's national infrastructure pipeline project, where the government plans to invest Rs 114 trillion (Rs 114 lakh crore) by 2024-25.

“Structurally, copper and aluminium are bubbling with the possibility of a super-cycle given high potential demand arising from greenification policies amidst lethargic supply, but in steel, the recent rally holds less steam beyond 1-2 quarters. Steel demand growth shall moderate on a high base of last year in China as iron ore prices