Income Tax Relief To Help Steel Sector: ISA

(MENAFN- KNN India) New Delhi, Feb 4 (KNN) The Indian Steel Association (ISA) has welcomed the recent reduction in direct taxes, predicting a positive ripple effect on the steel sector.

With the government's focus on empowering the middle class, ISA believes this move will increase buying power, boosting consumption in key industries like auto and consumer goods.

These sectors, along with their value chains, account for about 15 per cent of total steel consumption.

ISA President Naveen Jindal emphasised, "The reduction in direct taxes will certainly spur consumption, indirectly benefiting the steel sector. The boost to the middle class will invigorate growth in the auto sector and consumer goods, further strengthening their value chains."

Jindal, who also chairs Jindal Steel and Power Ltd, highlighted the government's commitment to maritime development with a Rs 25,000 crore maritime fund, expected to reduce logistics costs in export-import trade.

Despite a slight reduction in capital expenditure from Rs 13 lakh crore to Rs 11.2 lakh crore, JSW Group Chairman Sajjan Jindal remains optimistic about the continued focus on infrastructure spending.

"While the spend is lower than anticipated, the overall thrust on capex will significantly benefit core sectors like steel," he noted.

Other industry leaders, such as Amitava Mukherjee, CMD of NMDC, have lauded the budget's focus on public-private partnerships, describing it as growth-oriented.

Additionally, the Budget prioritises renewable energy, with a special emphasis on nuclear energy-targeting 100 GW by 2047-which has been hailed as a crucial step in India's green transition.

This shift is expected to impact the steel industry, with leaders like Dilip Oommen, CEO of ArcelorMittal Nippon Steel India, underscoring the importance of green energy in driving sector growth.

The allocation of Rs 15,000 crore towards the SWAMIH Fund 2 and a massive Rs 1 lakh crore Urban Challenge Fund for city redevelopment is expected to stimulate infrastructure demand, further benefiting the steel sector.

Industry figures like Satish Kumar Agarwal and Vivek Bhatia also see these measures as key drivers for the construction and materials sector in the years ahead.

(KNN Bureau)

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