The Union Finance Minister Nirmala Sitharaman recently unveiled the much-awaited budget for the financial year 2021-22. A slew of measures announced is likely to lead to the revival of the economy which has been reeling under a slump due to the COVID-19 pandemic.
The increase in spending on infrastructure and capital expenditure creation is deemed as the major favorable steps. Leading industry players like Purvi Bharat Steels Limited, a subsidiary of Orrisa Stevedores Limited (OSL Group) led by Mahimananda Mishra, believe that the increase in capital expenditure for infrastructure projects will lead to a surge in the demand for steel across the country.
As a robust measure to boost the country’s infrastructure, the budget has proposed increasing the capital expenditure to Rs 5.54 lakh crore in the next fiscal year, along with a major emphasis on achieving the goals of the National Infrastructure Pipeline (NIP).
“For 2021-22, I propose a sharp increase in capital expenditure and thus have provided Rs 5.54 lakh crore which is 34.5 percent more than the BE of 2020-21,” said Finance Minister Nirmala Sitharaman in her speech for the budget 2021-22.
Additionally, the decrease in customs and anti-dumping duty on steel imports would certainly prove to be beneficial for the steel manufacturers. Industry experts at Mahimananda Mishra-led OSL Group deem this as a favorable move that could facilitate a more cost-effective supply base for steel in the country.
In its attempt to augment the economic activities, Prime Minister Narendra Modi stated that this budget is in continuation of the government efforts for reviving the sectors severely hit by the pandemic. With several measures to spur the demand of steel in India, the Union budget 2021-22 has certainly laid the foundation for sustainable development of the economy in the long run.