Union Budget 2025: Direct Tax Reduction to Benefit Steel Sector

The significant reduction in direct taxes is expected to benefit the steel sector, as focusing on the middle class and increasing their buying power will lead to growth in consuming sectors, the Indian Steel Association (ISA) said. The auto and consumer goods industry, along with their value chain, account for 15 percent of steel consumption, the industry body said.

ISA President Naveen Jindal said, "The significant reduction in direct taxes...is bound to spur consumption that will have an indirect benefit for the steel sector. The focus on the middle class and increasing their buying power, will surely help growth in the auto sector and boost the consumer goods sector and their value chain."

Jindal who is also the Chairman of Jindal Steel and Power Ltd (JSPL) said the focus on shipbuilding clusters and maritime development fund, having a corpus of Rs 25,000 crore will help reduce Exim (Export-Import) logistic costs.

Sajjan Jindal, Chairman and Managing Director of JSW Group, said, "The government has maintained its thrust on capex though the spend of Rs 11.2 lakh crore is lower than the spending of around 13 lakh crore that I was hoping for, based on the past trend. But still, capex spending is at a robust level and will give a boost to the core sectors.

Amitava Mukherjee, CMD of state-owned NMDC, described the Budget 2025-26 as "growth-oriented," with its focus on public-private partnerships.

The emphasis on collaboration and reform measures in the Budget will help boost domestic growth as the company sets the stage for its 100 MnT production capacity target by 2030.