The increased investment in agriculture, education, health and infrastructure will contribute to sustain the growth in the long term. This will bring about inclusive growth the UPA government has consistently talked about. The focus on infrastructure would support an increase in the demand for manufactured goods. Better infrastructural facilities will also enable the manufacturing to become cost-competitive.
The export duty on iron ore and chrome ore is a welcome move and is directed towards conserving the scarce resources of the country. Though, restricting the exports volume could also have been considered. The budget does not incentivise large investments in the private sector. On the whole the budget is neutral to the steel sector.
(B. Muthuraman is MD, Tata Steel)
