The Budget focus on high-speed rail, inland waterways and sustained public capital expenditure will lead to long-term structural demand across allied infrastructure sectors.
The key highlight of the Budget is the government’s proposal for the establishment of seven new High-Speed Rail Corridors and the planned operationalisation of 20 National Waterways over the next five years.
Vinesh Mehta, Chairman, Abhay Ispat Group said the Budget will be as a “demand multiplier” for the steel industry.
The aggressive expansion of high-speed rail and inland waterways ensures a sustained, long-duration order pipeline for the sector, he said.
The demand growth will not be merely driven by volume but has to be measured through the demand for specialised and high-grade value-added steel which will be central to the country’s infrastructure evolution, he said.
The government’s thrust on decentralised infrastructure development across smaller cities will broaden demand for TMT bars, roofing sheets and other construction materials buffering the sector from global price fluctuations.
The strategy of intervention in six specified areas with measures to support Champion MSMEs will boost downstream consumption in fabrication and heavy engineering, he added.
The emphasis on smaller cities is transformative as it spreads consumption beyond metros while tax reforms enhance liquidity for MSMEs — key partners in the value chain, he added.
The outlook for the Indian iron and steel industry remains decisively bullish with continued strength in public capex and clear policy alignment positioning steel as a core driver of India’s $5 trillion ambition, he added.
Abhay Ispat Group is among India’s most trusted partners in the steel value chain, spanning trading, value-added coated steel under the Colorshine brand and advanced steel service centers.
Published on February 2, 2026
