In the last few years, the Indian foundry industry has seen a tremendous transformation and has recently become the 3rd largest caster in the world. Owing to this and the opportunities presented in the budget, the casting manufacturers in India look to expand their business by 2020. It is believed that the foundry industry employs about two million people both directly and indirectly. However, the real matter of concern is the cost and the uncertain US policies on the import of foundry and casting.
According to Anil Waswani, President of Institute of Indian Foundrymen (IIF), Indian foundry industry is looking forward to double its revenue by 2020.All thanks to the growth in demand of railway infrastructure, defence, aerospace, earth moving, material handling and revival of the automotive industry, there will be a substantial demand for foundries.
At present, the annual revenue of Indian foundry sector is approximately USD 18 billion of which USD 2.7 billion is generated from exports alone.
The budget, has however, not provided any relief to casting manufacturers in India on the import duty of met coke and metal scrap.
Also, Mr. Waswani is dreading the impact of the Make in USA program which will perhaps change the US policies and affect the import of casting and foundry from India. He also mentioned about how demonetisation has affected the foundry industry in terms of sourcing of domestic metal scrap. He said, “There has been a drop of 20%-30% in the production much against the expected 10%-15% growth due to demonetisation. The end users are feeling the pinch and so the demand for it has slipped.” Also, pig-iron, a raw material used in the foundry industry is costlier than metal scrap. But demonetisation has surpassed the price due to shortage of scrap.
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