India’s FY27 budget, with higher infrastructure spending and measures to support domestic manufacturing, has been welcomed by major steel producers, who expect sustained demand growth across railways, housing and urban development.
Key proposals include around USD 133 bln earmarked for infrastructure, covering seven new high-speed rail corridors and the operationalization of 20 national waterways, initiatives expected to directly support steel consumption and improve logistics.
Indian Steel Association president and Jindal Steel and Power Limited chairman Naveen Jindal said the 22.2pct effective increase in capital expenditure would help sustain infrastructure activity and steel demand. JSW Steel highlighted the rail and waterways projects as a dual benefit, boosting demand while improving the movement of raw materials.
Dilip Oommen, CEO of AM/NS India, said continued capex outlays, along with measures to strengthen project financing, revive industrial clusters and expand infrastructure in Tier-2 and Tier-3 cities, would support long-term industrial growth and competitiveness.
From the stainless steel segment, Rajamani Krishnamurti, president of Indian Stainless Steel Development Association, said higher investment in rail, water and urban infrastructure strengthens the case for stainless steel. He added that quality-focused procurement policies and support for small and medium enterprises would broaden material adoption in public projects.
Steelmakers also welcomed the more than USD 2 bln allocation for Carbon Capture, Utilization and Storage (CCUS). Parmod Sagar, chairman, managing director and CEO of RHI Magnesita India, said the CCUS focus is a forward-looking move that will deepen industry-government collaboration and support India’s net-zero ambitions.
