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.

 

1. Life Cycle Cost Analysis (LCCA) for public infrastructure:

o Make LCCA mandatory at the DPR stage of public infrastructure projects.

o Promote the adoption of materials like stainless steel, which offer unparalleled corrosion resistance, lower maintenance costs, and longer lifespans.

2. Customs duty adjustments:

o 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.

o Reduce customs duties on Graphite Electrodes and Charge Chrome to zero.

3. Trade protection measures:

o Introduce fixed tariff values for stainless steel products to counter unfair trade practices and prevent dumping, especially from China.

o Amend trade remedial mechanisms by removing the “lesser duty rule” to strengthen domestic manufacturing safeguards.

o 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:

o Provide fiscal incentives for technological upgrades and capacity expansion in the stainless steel industry, particularly for MSMEs.

o Simplify tax regulations, extend filing timelines, streamline TDS rates, and make CSR expenses deductible under the Income Tax Act.

5. Sustainability incentives:

o 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:

o Retain export duties on chrome ore to secure domestic supply and prevent resource depletion.

 

7. Faceless assessment and licensing:

o Define clearer customs assessment procedures and reduce malpractices in customs clearance and advance license systems to ensure smooth operations.

 

Rajamani Krishnamurti, President, ISSDA, stated, "The stainless steel industry is integral to India’s infrastructure and sustainability goals. By prioritising 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.