Budget 2026: Metals Industry Seeks Cost Relief, Policy Stability Amidst High Demand
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Moneycontrol•31-01-2026, 09:06
Budget 2026: Metals Industry Seeks Cost Relief, Policy Stability Amidst High Demand
- •India's metals industry faces a mix of strong demand driven by infrastructure spending and energy transition, alongside rising costs and policy uncertainty.
- •Steel demand is projected to grow 9-10%, supported by Rs 11 lakh crore capital expenditure, with aluminum and copper demand also expanding due to EV and renewable energy targets.
- •High import dependence for critical minerals like lithium and cobalt, coupled with low beneficiation rates for iron ore, leads to significant cost pressures.
- •Industry experts suggest rationalizing import duties on critical minerals to zero and overhauling mining policies to allow greater private participation and reduce double taxation.
- •The sector seeks policy stability, particularly regarding import duties, to ensure predictability and competitiveness, while encouraging formal gold investments.
Why It Matters: Budget 2026 must address cost pressures, rationalize duties, and ensure policy stability for India's metals industry.
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