In the second issue of the Kallanish Steel Intelligence India report, we address how the domestic steel industry is cautiously optimistic on the sector’s long term growth prospects, despite some noting the lack of announcements on mild steel in the national budget. 

India’s finance minister Nirmala Sitharaman announced the union budget on 1 February for the upcoming fiscal year ending March 2026 (FY26). It set a capital expenditure allocation at INR 11.21 lakh crore ($129.4 billion) and reduced the basic customs duty (BCD) on stainless steel and related products from 25% to 15%. The main players impacted by this change can been seen later in this report. The BCD for mild steel hot rolled coil, under HS codes 7208, however, remained unchanged at 7.5%.

The industry reaction to the budget was that of initial surprise, due to the reduction of import duty on stainless steel, tinplate and grain-oriented silicon steel (GOES). It subsequently morphed into cautious optimism as participants anticipate the FY26 infrastructure spend and other related announcements, will help support sustainable steel consumption in the country on a long-term basis. 

This introductory issue is free to download, please access it by clicking on sample to download the full copy.  If you would like to explore more recent issues and enquire about a subscription, please contact us.