The debate about benefits or shortcomings of demonitisation, implementation of GST is going on nationwide is a truly welcome sign. I am sure Indian economy would mature by these discussions and would move ahead with more zeal in coming days.
As regards metals industry, as long as the economic wheel is running with a reasonable speed, it will keep creating metals demand. Fortunately auto sale figures are impressive for the last few months, thanks to good monsoon which triggered the sale of tractors. This has positively impacted foundry sector and their capacity utilization has improved substantially. Also, they have started planning forward with great expectations from the future. Not only the casting units but the whole vertical as such is in vibrant state.
For the last few years, the demand for primary metals seemed to be stagnated but now it seems that the things have started moving. With metro rail projects in many cities, road building on fast track and also other infra projects the requirement of metals is going to increase manifold. The demand curve has started moving up a bit and this has made primary metal producers optimistic. Few have restarted their expansion plans and the industry sentiment has improved considerably.
Amongst all these happenings, there is one distinct good news for India. World bank monitors a parameter called ‘Ease of doing business’. Till now India ranked 142 on a global level but now her position jumped to 100. It’s a really huge leap, probably the biggest one in one year for any country. For the last few years, India was seen as one of the fastest growing economy and many overseas companies were eyeing on her huge marketplace and wanted to participate in this growing economy. Now with improved ease of doing business in India, I hope there will be more inflow of not only companies but also the investment from international financial institutions which is very vital for building a solid infrastructure in the country.
I would not like to take any side on demonitisation or GST implementation but I strongly feel that India is changing, and changing for better !