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Post Budget Scenario


Steel Industry

Budget Offers
Higher spending on infrastructure. Steel purchased for Gujarat relief work to be exempt from Excise duty. he dividend tax has been reduced by 10% to 10%

The Impact
The rise in spending on infrastructure, including roads, will benefit the sector in terms of a better demand environment. The Gujarat earthquake is likely to trigger large-scale construction activity. The exemption from excise duty for steel procured for reconstruction purposes will only help lift demand as steel becomes more affordable. The reduction in the dividend tax will benefit companies, as the tax outgo will reduce. This will add to cash flows, or alternatively, could result in higher dividend payouts.