Budget 2023: Lacklustre event for metals sector, duties unchanged

Finance Minister Nirmala Sitharaman delivers her fifth Budget.

The Budget 2023-24 did not offer metal companies any new giveaways, maintaining the status quo on duty and tax structures for raw material sourcing. Increased infrastructure spending, however, was positive for demand.

“To facilitate the availability of raw materials for the steel sector, exemption from Basic Customs Duty (BCD)  on raw materials for the manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued,” Finance Minister Nirmala Sitharaman said on February 1 while presenting the Budget .

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“Similarly, the concessional BCD of 2.5 percent on copper scrap is also being continued to ensure the availability of raw materials for secondary copper producers who are mainly in the MSME sector.”

The industry was expecting some clarity on decarbonisation initiatives for the steel sector, including definition of "green steel". The budget speech disappointed steel companies on that front.

The government rolled back an export duty on certain grades of steel and related raw materials in November. In the run-up to the budget, industry experts said metal companies would look forward to further duty, cess and tax changes.