SMPL
New Delhi [India], February 19: Synergy Steels lauds the Union Budget 2025-26, as it places high priority on infrastructure expansion and logistics efficiency, both critical for strengthening India's stainless steel sector. It is expected that the government's commitment to building public-private partnership (PPP) projects for key ports totaling Rs50,000 crore over the next five years. This, alongside Rs10.7 lakh crore in capital expenditure for infrastructure, marks a major step towards improving India's logistics network. This will alleviate logistics costs, increasing the competitiveness of Indian manufacturing on a worldwide scale.
The budget has also allocated Rs10.7 lakh crore in capital expenditure for infrastructure ministries to modernize transport corridors, expand port capacities, and integrate multi-modal logistics networks. Additionally, the launch of the Rs25,000 crore Maritime Development Fund aims to provide long-term financing for the shipping sector, which will directly benefit stainless steel consumption in shipbuilding and port infrastructure.
Subhash Kathuria, Chairman of Synergy Steels, commented, "The Union Budget 2025-26 rightfully acknowledges the urgent need to bring down logistics costs, which remain a challenge to India's manufacturing competitiveness. With Rs50,000 crore targeted for PPP-driven port modernization, the government is addressing a structural bottleneck that has long affected the stainless steel sector. Efficient ports and streamlined freight corridors will lower transportation costs, reduce turnaround times, and enhance India's position in the global stainless steel value chain. The Maritime Development Fund and continued investments in logistics infrastructure will catalyze demand across multiple sectors, from shipbuilding to urban development, reinforcing the applications of high-grade stainless steel rebars, fasteners, and marine-grade stainless steel products across these infrastructure projects as a material of choice for long-term sustainability."
He also added that, "The logistics cost for the steel and stainless steel sector comprises around 28% of the cost structure. The logistics costs in India are much higher than the global average, making up about 14% of GDP as compared to a global average of 8% to 10%. A focus on port modernization should be part of a bigger initiative to reimagine the logistics landscape of India. This includes upgrades of inland container depots (ICDs), enhanced transport corridors, and seamless connectivity between importers, exporters, and consumers. Having an integrated, holistic approach to logistics that would reduce congestion and inefficiencies at multiple touchpointsbeyond portsremoves barriers to smoother goods movement."
The budget also emphasizes urban transformation, with a Rs1 lakh crore Urban Challenge Fund that will support smart cities, metro projects, and resilient infrastructure, all of which consolidate demand for stainless steel due to its durability and sustainability benefits and build multi-modal connectivity . Additionally, the Rs1.5 lakh crore interest-free loan to states for capital expenditure will further accelerate infrastructure-driven demand.
These developments pave the way for building an integrated and efficient logistics ecosystem that will aim to reduce import dependency and will make Indian stainless steel globally competitive with a more cost-efficient logistics supply chain. Synergy Steels remains committed to leveraging these opportunities by expanding its manufacturing capabilities and aligning with national growth priorities.
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