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.