Budget 2023 to 2024 New Hope for The Steel Industry

Several of the proposals highlighted in the 2023-24 Budget could translate into renewed hope of boosting demand and the steel industry. Although there is not much emphasis on the steel industry in the 2023-24 Budget, there is still an opportunity to drive demand for steel in the domestic market. It's all about focusing on some key announcements related to infrastructure, primarily housing, rail, ports, airports, etc., and figuring out the scope of demand.

The budget also highlighted a 66 per cent increase in spending by Pradhan Mantri Awas Yojana–Urban (PMAY-U) to over Rs 79,000 crore. The mission addresses the urban housing shortage in economically weaker sectors (EWS), low-income groups (LIG) and middle-income groups (MIG). This will also create more housing opportunities, thereby increasing the demand for steel.

Last but not least, the extension of tariff exemptions for steel scrap, raw materials used to make cold-rolled grain-oriented alloys (CRGO) and nickel cathodes is a welcome step for the steel industry. Overall, it can be concluded that this is a good budget for steelmakers. The removal of 'export duty' on finished steel products after inclusion in the RoDTEP scheme had been announced ahead of the budget and inclusion of 'special steel' under the PLI scheme was applauded by steelmakers as it would give a further boost to 'Make in India' while Added to the narrative of "Atmanirbhar Bharat".