Increased capex on infra to spur steel demand

New Delhi: The increased capex on infrastructure in the budget will spur domestic steel demand, attract investments and create job opportunities, industry players and experts said.

Finance Minister Nirmala Sitharaman presented her sixth Budget on Thursday in which she announced Rs 11.11 lakh crore spending on infrastructure among other proposals for sectors like solar and startups. "This focus on infra will result in robust domestic steel demand, attract investments and create job creation. The coming 5 years will see again the unprecedented growth and development and steel will be a key driver in this development," Alok Sahay, Secretary General, Indian Steel Association (ISA) told. Kamdhenu CMD Satish Kumar Agarwal said the budget addressed one of the most important needs of the middle class that is housing. The government's commitment to build 20 million houses for the poor in the next five years and the announcement of a scheme to help deserving sections of the middle class buy or build their own houses will all contribute to high demand for construction inputs, he added. Anubhav Kathuria, Director, Synergy Steels said the expansion of PM-Awas Grameen Yojana to 2 crore more houses and the conversion of 40,000 existing railway bogies to Vande-Bharat standards besides the three new railway economic corridors, NaMo Bharat and metro projects are expected to be key drivers for stainless steel demand.