“The increased outlay of 11.1% to ₹11.11 lakh crore accounting for nearly 3.4% of the country’s GDP would ultimately lead to enhanced demand for various sectors, including cement, steel, power etc.”
The government has given a major boost to infrastructure development in the Budget and increased the outlay by 11.1% to ₹11.11 lakh crore accounting for nearly 3.4% of the country’s GDP, which would ultimately lead to enhanced demand for various sectors, including cement, steel, power etc. The focus on rural development including rural infrastructure will lead to better roads and connectivity and improving access to rural hinterlands, which will go a long way in improving the distribution and thereby increase sales for companies particularly in the under penetrated rural and semi-urban markets. The three crore additional houses to be constructed under the PM Awas Yojana in rural and urban areas should give a major fillip to the construction sector and drive the overall economic growth of the country in the long run.
By Vijay Kaushik, Founder, Chairman & Managing Director, Vibhor Steel Tubes Ltd
