The Budget has provided a thrust to the steel sector through progressive policy interventions which includes a push towards infrastructure investments, export facilitation, and direct incentives which will boost both domestic production and consumption, Union Minister for Steel and Heavy Industries, HD Kumaraswamy said.

Speaking to businessline, the Minister said, the Budget aims at “encouraging fresh investments” in the sector while improving global competitiveness. This will create significant employment opportunities.

“The Budget’s focus on infrastructure aligns with PM Narendra Modi’s vision of boosting domestic manufacturing, and positioning India as a global leader in steel production,” he said, adding that steeps will be taken “to strengthen India’s domestic supply chain.”

According to Kumaraswamy, industries such as shipbuilding, defence, and heavy machinery should benefit; apart from automobiles and railways.

This comes even as the steel sector is facing headwinds with cheap imports from China. All the major steel companies have been reporting weak financials for the past few quarters.

Push for value-added steel

The Minister continues to push for “value-added steel production in India”. According to him, strengthening India’s role in global supply chains will increase demand for high-grade, specialty, and value-added steel exports.

“We hope the launch of BharatTradeNet (BTN) will simplify export documentation and streamline trade processes, making it easier for Indian steel manufacturers to compete in international markets,” he said.

The Manufacturing Mission & Clean Tech incentives will promote domestic production of wind turbines, electric vehicle batteries, and solar panels, all of which rely on specialised steel alloys.

Strong Triggers

According to Kumaraswamy, the ₹25,000 crore shipbuilding cluster and maritime fund; a ₹1 lakh crore Urban Challenge Fund—promoting development of high-rise buildings, metro systems, commercial complexes, and industrial hubs—can lead to “greater demand for steel-based structures”.

A ₹1.5 lakh crore allocation to state governments for capital expenditure implies accelerated push for infra addition, that include construction of highways, railways, bridges, airports, and smart cities.

“All of this will require high steel consumption,” he said adding that a ₹10 lakh crore Asset Monetization Plan (2025-30) will fund new large-scale projects.

Industry is hopeful of a boost in demand with the announcements made in the Union Budget. According to Dilip Oomen, CEO, AMNS India—amongst the largest steel-makers in the country—the sector “stands to benefit from indigenous shipbuilding and marine development projects”.

“Enhanced credit availability for MSME will have access to financing for businesses involved in the construction and manufacturing sectors,” he said.

No major changes have been proposed in duty structures across steel products in the Budget. For instance, the Budget proposed, flat-rolled products of stainless steel of width 600 mm or more (nickel chrome and other sheet plates) to 15 per cent from 22.5 per cent, but as clarified by senior ministry officials, there is no major change in effective tariff rates. Import duty continues to be at 7.5 per cent.

While domestic consumption of steel in India has been hovering around the 10-12 per cent range for the first nine months, prices have taken a hit on account of excess stocks from China coming into India (rising imports) and declining exports (key markets like Europe being hit).

A probe is on to explore possible safeguard measures for lower priced imports coming in.

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