Budget's push on infra, MSMEs to support demand: Steel industry players

Increased capital expenditure, provisions for industrial clusters, and focus on MSMEs in the FY27 budget are expected to strengthen economic activities and support steel demand, steel industry players said on Monday.

Presenting the annual Budget for the next financial year on Sunday, Finance Minister Nirmala Sitharaman announced a series of measures covering infrastructure, renewables, logistics and the MSME sector.

Sharing his views with PTI, Naveen Jindal, President of the Indian Steel Association, said that a 22.2 per cent effective increase in capital expenditure, focus on freight corridors and inland waterways, and the ₹10,000-crore container manufacturing scheme are expected to strengthen infrastructure activity, improve trade logistics and support steel demand.

 

Dilip Oommen, CEO of AMNS India, said the steps to strengthen project financing, revive industrial clusters and expand infrastructure in Tier-II and Tier-III cities will boost domestic manufacturing and enhance competitiveness.

The support extended to MSMEs is a significant move as a substantial portion of India's stainless steel capacity lies in this segment. The measures will empower smaller units to upgrade technology, improve quality and compete more effectively against substandard imports, said Rajamani Krishnamurti, President of the Indian Stainless Steel Development Association (ISSDA).

According to Abhyuday Jindal, Managing Director of Jindal Stainless, MSMEs are the backbone of manufacturing and initiatives such as the SME Growth Fund, the Self-Reliant India Fund top-up and simplified compliance norms will strengthen the overall value chain.

In her Budget speech, the Finance Minister also proposed a ₹20,000-crore allocation for Carbon Capture, Utilisation and Storage (CCUS).

Parmod Sagar, Chairman, Managing Director and CEO of RHI Magnesita India, said the continued momentum of infrastructure-led growth, supported by an enhanced capex outlay of ₹12.2 lakh crore, is a welcome move and will significantly benefit enabling industries such as refractories.

CCUS will help steel companies capture and reuse carbon emissions, reduce environmental impact and align with global climate commitments, including India's net-zero target by 2070, Harsh Bansal, Managing Director at BMW Industries, said  Ram Aggarwal, CEO of Goodluck India, said the planned outlay across defence, urban and rural development, logistics and high-speed rail networks will boost demand for specialised steel products.

With the fiscal discipline and infrastructure-led growth, the budget creates a balanced framework where sustainability and scale move together, supporting long-term investments in cleaner technologies and modern production facilities, said Sandeep Kumar, Managing Director of A-One Steel India.

Vinesh Mehta, Chairman of Abhay Ispat, said the budget's focus on domestic manufacturing, technological upgrades and sustainable practices will strengthen the steel industry's contribution as demand rises across construction, automotive, railways and energy sectors.

Rupin Banker, Co-founder of Strategic Global Alliance, said the continued emphasis on infrastructure, backed by a capital expenditure outlay of ₹12.2 lakh crore in FY27, will steer investment towards scale, stability and long-term capital.

Vibhor Kaushik, Managing Director of Vibhor Steel Tubes, said the focus on Tier-II and Tier-III cities through modern infrastructure will increase the usage of steel pipes, power transmission poles and crash barriers.

Pradeep Khaitan, MD of rail tracks solutions provider Pandrol Rahee Technologies, said the planned expansion of the Kavach train protection system to 18,000 km, along with large-scale track capacity augmentation and the induction of modern rolling stock, will significantly accelerate the adoption of advanced rail fastening systems, vibration control solutions, and high-performance track technologies.