According to the federal budget for 2015-16 placed before the Indian Parliament on Saturday, February 28, Indian government spending on infrastructure projects during 2015-16 will increase by $11 billion.
"It is heartening that infrastructure sector spending has been given a major thrust and this will spur domestic steel demand and the higher government spending will ease supply side constraints faced by domestic steel companies," stated C S Verma, chairman of domestic steel producer Steel Authority of
India Limited (SAIL).
On the other hand, in spite of the expectations of the mining industry, the government did not scrap or reduce the 30 percent export duty on iron ore.