Higher public spending on infrastructure to boost steel consumption

With the government gearing up to spend Rs 3.96 trillion (allocated in this year’s budget) towards the development of infrastructure, such as ports, roads, affordable housing and physical infrastructure, Steel Users Federation of India (SUFI) expects a big boost in demand for steel in the country. The Indian government’s has laid emphasis on ‘Be Indian Buy Indian’, thus emphasising to necessarily buy only domestically manufactured steel which will eventually drive the consumption, said SUFI.

Nikunj Turakhia, president, SUFI, explained, “The industry in under great anticipation since the big budget allocation in infrastructure development, as the announcement sets high consumption targets. This can prove to be a major demand driver for the growth of steel sector. Such a move from the government augurs well for further investment in steel sector, giving a major push to the industry as a whole.”