Union
Budget 2025-26: ISSDA's Expectations for Transforming the Stainless Steel
Industry
The Indian Stainless Steel
Development Association (ISSDA), representing the backbone of India's
sustainable infrastructure and manufacturing, eagerly anticipates the Union
Budget 2025-26. The association underscores the urgent need for strategic
interventions to strengthen the domestic stainless steel sector, drive
sustainability, and enhance global competitiveness.
A cornerstone of ISSDA's
recommendations is the mandatory inclusion of Life Cycle Cost Analysis (LCCA)
in all public infrastructure projects at the Detailed Project Report (DPR)
stage. This measure will ensure that the total cost of ownership—including
procurement, operation, maintenance, and disposal—is considered, paving the way
for economic efficiency, sustainability, and durability in public
infrastructure. Such a policy will align India's development with global
standards, benefiting stakeholders across the value chain and fostering
environmentally responsible practices.
Key Expectations from the
Union Budget 2025-26:
1. Life Cycle Cost Analysis (LCCA) for Public
Infrastructure:
Make LCCA mandatory at the
DPR stage of public infrastructure projects.
Promote the adoption of
materials like stainless steel, which offer unparalleled corrosion resistance,
lower maintenance costs, and longer lifespans.
2.
Customs Duty Adjustments:
Zero customs duty on
critical raw materials like Ferro Nickel, Pure Nickel, Molybdenum Concentrates,
and Stainless Steel Scrap to lower input costs and improve global
competitiveness.
Reduce customs duties on
Graphite Electrodes and Charge Chrome to zero.
3.
Trade Protection Measures:
Introduce fixed tariff
values for stainless steel products to counter unfair trade practices and
prevent dumping, especially from China.
Amend trade remedial
mechanisms by removing the “lesser duty rule” to strengthen domestic
manufacturing safeguards.
Address misuse of Free
Trade Agreements (FTAs), particularly with ASEAN nations, through stricter
enforcement and anti-circumvention measures.
4.
Support for Domestic Production and MSMEs:
Provide fiscal incentives
for technological upgrades and capacity expansion in the stainless steel
industry, particularly for MSMEs.
Simplify tax regulations,
extend filing timelines, streamline TDS rates, and make CSR expenses deductible
under the Income Tax Act.
5.
Sustainability Incentives:
Offer tax benefits and
subsidies for adopting green steel technologies to align with India's carbon
reduction goals and foster innovation in sustainable manufacturing.
6.
Export Duty Retention:
Retain export duties on
chrome ore to secure domestic supply and prevent resource depletion.
7.
Faceless Assessment and Licensing:
Define clearer customs
assessment procedures and reduce malpractices in customs clearance and advance
license systems to ensure smooth operations.
Rajamani Krishnamurti,
President of ISSDA, stated, “The stainless steel industry is integral to
India's infrastructure and sustainability goals. By prioritizing Life Cycle
Cost Analysis in public projects and implementing supportive policies, the
government can transform the sector into a global powerhouse, contributing
significantly to India's Atmanirbhar Bharat mission."
ISSDA remains committed to
working collaboratively with the government and stakeholders to position
India's stainless steel industry as a leader in sustainable and fair trade
practices. The association is optimistic that the Union Budget 2025-26 will
address these pressing issues and unlock the sector's full potential.