Sharing his outlook on the Union Budget for FY 2022-23, Mr. Ashwani Gupta, Director, Vividh Wires Ltd., says, “GOI’s commitment to investing in infrastructure should ensure a steady demand for the steel industry as a whole.”

Union Budget 2022-23 has placed a special emphasis on technology adoption and entrepreneurship with the announcement of some prudent initiatives for MSMEs and start-ups. The 15 percent tax rates for newly incorporated manufacturing units will undoubtedly lead to a boost in manufacturing activities.

Additionally, the incessant push towards digital banking services as well as ensuring the flow of funds to small businesses should ensure that India continues to grow at a faster pace than most major economies.

The capital expenditure target of INR 7.5 lakh crore, coupled with a slew of incentives across a broad spectrum of industries, demonstrates the government’s strong desire for reviving economic growth. GOI’s commitment to investing in infrastructure should ensure a steady demand for the steel industry as a whole.

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PLI-linked incentives, including those for specialty steels, have also provided a greater impetus for economic growth with capital intentions totalling nearly INR 30 lakh crore. However, some further initiatives to reduce trade and taxation compliances to benefit a wider array of stakeholders were also expected, but the Budget has been found slightly lacking on that count.

Also Read: UNION BUDGET 2022-23

Overall, the Union Budget seems to be fairly well-balanced and should augment India’s quest for double-digit GDP growth, barring any further hiccups due to COVID. While execution is equally vital, the announced measures should notably benefit both the steel and infra sectors, as well as lead to solid macroeconomic growth for the economy.