India Posts Growth In Steel Production Amid Global Decline
Major infrastructure projects in the road, rail, and ports sectors, driven by government initiatives to boost growth and employment, are substantial consumers of steel
India has emerged as the sole country among the world's top steel producers to report growth in steel production for April 2024, according to the World Steel Association. As the world's second-largest steel producer, next to China, India produced 12.1 million tonnes of steel, marking a 3.6 per cent increase compared to the same month last year.
Economists attribute this growth to the heightened economic activity within the country. Major infrastructure projects in the road, rail, and ports sectors, driven by government initiatives to boost growth and employment, are substantial consumers of steel. Additionally, the rising demand for automobiles, including cars, two-wheelers, and commercial vehicles, further fuels the need for steel.
India's steel sector is reflecting the country's robust economic performance, standing out amid a global slowdown. Data from the World Steel Association highlight the struggles of other major steel-producing nations. Japan's production fell by 2.5 per cent to 7.1 million tonnes, the US saw a 2.8 per cent decline to 6.7 million tonnes, Russia's output dropped 5.7 per cent to 6.2 million tonnes, and South Korea experienced a significant 10.4 per cent decrease to 5.1 million tonnes.
China, which continues to grapple with excess steel capacity and US tariffs on its exports, recorded a 7 per cent decline in production, falling to 85.9 million tonnes. There is growing concern that China might resort to dumping its surplus steel at low prices in other markets, having lost significant access to the US market.
India's performance in the steel sector not only underscores its economic resilience but also positions it as a bright spot in the global market, demonstrating the country's ongoing industrial and infrastructural development.
