The government's move to raise infrastructure spending by 11 percent in the interim budget will translate into robust domestic steel demand, spurring private investments and job creation, Indian Steel Association president Dilip Oommen said on February 1.
"The emphasis on building all forms of infrastructure – digital, social, and physical – at an unprecedented pace is promising. Fiscal deficit target for FY 24-25 at 5.1 percent and continuous fiscal prudence are indeed laudable," he said.
Jindal Steel said in a tweet that the company "commits to playing a pivotal role in this, contributing to India's development”.
Meanwhile Tata Steel Managing Director TV Narendran called the move as a "welcome step", and that it would have a multiplier effect on the nation’s overall economy.
"The continued expansion of rural housing along with the proposal to develop three economic railway corridors under the PM Gati Shakti Yojana are other significant moves that will spur steel demand, create jobs, and improve connectivity & logistics," Narendran said.
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"There is an 11.1 percent increase in capital expenditure for infrastructure, taking the total outlay to Rs 11.1 lakh crore. However, if we look at the likely spending in FY24, it will be about Rs 9.5 lakh crore. So, essentially, the increase will be about 17 percent in real terms," Oommen added.
Presenting the budget, finance minister Nirmala Sitharaman allocated Rs 11.1 lakh crore as capital expenditure for the next fiscal. While this is an increase of 11.1 percent from the current year's Budget estimate, it is 16.9 percent higher than the revised estimate.
Also Read | Budget proposes 3 major railway corridors, upgrading 40,000 trains to Vande Bharat status
The industry had expected a boost to infra spending, it had sought duty exemptions on some raw materials and input costs along with coking coal and PCI coal.
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