Infrastructure, Housing And EVs Key Focus Of Union Budget

With an aim to become a $5-trillion economy in the next few years, the Union Budget 2019-20 has stressed upon the need for heavy investment in infrastructure, housing, digital economy and job creation in small and medium firms.

Support to steel sector

In a bid to provide level playing field to domestic industry, customs duty of 5 percent has been hiked to 7.5 percent for stainless steel products, other alloy steel, wire of other alloy steel other than Invar.

Reduction in customs duty rates from 5 percent to 2.5 percent on inputs for the manufacture of CRGO steel like MgO coated cold rolled steel coils, Hot Rolled coils, Cold-rolled MgO coated and annealed steel, Hot Rolled annealed and pickled coils, Cold rolled full hard.

Duty on Amorphous alloy ribbon has also been brought down from 10 percent 5 percent.

Duties have been waived for capital goods used for manufacturing of electronic items like Populated PCBA, Camera module of cellular mobile phones, Charger/Adapter of cellular mobile phone, Lithium-Ion Cell, Display Module, Set Top Box and Compact Camera Module.

To promote electrical mobility, duties on Electric vehicles components like E-drive assembly, on-board charger, E compressor and Charging Gun have been waived.

A section of the steel industry had asked the government to increase export duty on iron ore with more than 58 percent iron content by 20 percent.

In a letter to the Prime Minister’s Office, Pellet Manufacturers Association of India has asked for an increase in export duty on iron ore of +58 plus Fe content from current 30 percent to 50 percent.

Indian Stainless Steel Development Association had sought an immediate custom duty relief on importing key raw materials that can help boost domestic stainless steel production.

ISSDA had apprised that Ferro-Nickel and stainless steel scrap attract an import duty of 2.5 percent each and are unavailable in the country; hence need to be necessarily imported.

Major steel players have already filed a safeguard duty petition against the threat of cheap imports in the face of trade wars and a new wave of protectionism sweeping across the world.