“A country is not just its soil; a country is its people,” said Finance Minister Nirmala Sitharaman as she presented the Union Budget 2025-26 on February 1, 2025, under the theme Sabka Vikas, emphasizing balanced growth across all regions. The budget is set to play a crucial role in accelerating the growth of the tube and pipe industry, a sector integral to infrastructure development, construction activities, oil & gas industry, water supply, and manufacturing segment. With key policy measures, financial allocations, and structural reforms, the government aims to shape demand, drive investment, and foster technological advancements in this industry.
Jal Jeevan Mission
One of the major announcements in the budget is the extension of the Jal Jeevan Mission (JJM) until 2028, with an outlay of INR 67,000 crore. Highlighting the mission’s impact since 2019, the finance minister noted that 15 crore households, representing 80 percent of India’s rural population, have access to potable tap water. The extended timeline and increased allocation will ensure the completion of 100 percent coverage while shifting focus to the quality of infrastructure, sustainable operations, and community participation. This initiative is expected to significantly boost demand for PVC, HDPE, and ductile iron (DI) pipes, which are essential for water distribution networks across rural and urban areas.
Urban Challenge Fund
To strengthen urban infrastructure, the budget expands on the July 2024 proposals, introducing the Urban Challenge Fund worth INR 1 lakh crore to incentivize municipal governance reforms, urban planning, and improved services. The fund will support initiatives such as Cities as Growth Hubs, Creative Redevelopment of Cities, and Water & Sanitation, covering up to 25% of project costs, provided at least 50% of funding comes from bonds, bank loans, or public-private partnerships. For FY 2025-26, an initial INR 10,000 crore allocation has been proposed.
SWAMIH Fund
The SWAMIH Fund 2, with INR 15,000 crore, aims to complete 1 lakh housing units, further stimulating demand for steel and plastic pipes in the construction sector.
UDAN
The budget also focuses on expanding regional connectivity, unveiling a revamped UDAN initiative. Since its launch, the scheme has operationalized 619 routes and connected 88 airports, adding 120 new destinations. The renewed focus will support helipads and smaller airports in remote, hilly, and aspirational districts, particularly in the Northeast. India, currently the third-largest aviation market globally, will see 50 new airports in the next five years, including greenfield airports in Bihar and an expanded Patna airport. These developments will significantly increase demand for tubes and pipes, boosting the sector’s growth.
Boost to EV Sector
In addition to infrastructure and aviation, the budget eliminates basic customs duty (BCD) on key imported materials, including lithium-ion batteries. This move is expected to lower production costs in the electric vehicle (EV) segment, leading to increased demand for high-strength steel tubes used in EV manufacturing.
Industry Impact
JTL Industries has bagged an order worth INR 24 crore under the Jal Jeevan Mission for the supply of 3,000 metric tonnes of galvanized iron (GI) pipes. The leading manufacturer of section pipes and tubes, as well as Electric Resistance Welded (ERW) steel pipes in India, said that it has received the order from the Public Health Engineering (PHE) Department of Jammu for the supply of 3,000 MT GI pipes of assorted sizes, within the next 30 days.
“We are pleased to announce this significant order from the PHE Department, Jammu, under the Jal Jeevan Mission. The extension of JJM presents significant opportunities, and with our established track record as a trusted supplier to the government, JTL is well-positioned to support its next phase. As investments in water infrastructure rise, we see significant opportunities to create long-term stakeholder value, enhancing our visibility in the sector and further solidifying our commitment to India’s water security and rural development.” the company said.
Commenting on the budget, Mr. Satish Kumar Agarwal, CMD, Kamdhenu Limited, stated, “The Honourable Finance Minister Nirmala Sitharaman has presented a Budget that further strengthens India’s standing as the fastest-growing economy and builds on the clarion call of Aatmanirbhar Bharat. The allocation of INR 15,000 crore towards SWAMIH Fund 2 and the setting up of the INR 1 lakh crore Urban Challenge Fund for the redevelopment of cities will boost infrastructure development and demand for construction materials.”
Mr. Utkarsh Bansal, Executive Director, Utkarsh India, also shared his optimism about the budget’s impact on his company. He said, “The Jal Jeevan Mission extension until 2028, aimed at providing tap water connections to rural households, not only benefits millions of families but also signals a positive outlook for sectors such as PVC and steel pipes, aligning with Utkarsh India’s product offerings.”
Discussing the UDAN scheme expansion, he said, “With a focus on enhancing regional connectivity and infrastructure development, Utkarsh India is well-poised to contribute to this transformative journey, especially through high-mast installations.”
He also highlighted the modernization of cities through smart utilities and infrastructure integration, emphasizing the demand for innovative solutions. He further added, “Utkarsh India, with its expertise in infrastructure products like high masts and utility poles, is well-equipped to support the technological integration required for smart city frameworks.”
Furthermore, he pointed out the provision of INR 1.5 lakh crore in interest-free loans to states for infrastructure development, which is expected to fuel growth across multiple sectors. “This initiative will significantly benefit our product lines, including crash barriers, high masts, steel & PVC pipes, pre-engineered buildings (PEB), railway structures, towers, and more,” he said.
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Concluding on a positive note, he stated, “Our forward-looking approach and strategic vision position Utkarsh India at the forefront of leveraging the growth opportunities arising from the Union Budget 2025, reaffirming the company’s commitment to excellence and innovation in the infrastructure sector.”
All in all, the Union Budget 2025, with its significant focus on construction and infrastructure development, increased water supply, and booming manufacturing sector, is poised to revolutionise the tube and pipe industry. Strategic policy interventions, financial incentives, and sustainability-driven initiatives will not only bolster domestic production but also position India as a global leader in the sector.
