Introduction
India was the second-largest steel exporting and producing
country in the world before the terrible pandemic hit us. India and the whole
world were recently overtaken by the overwhelming production of steel from
China owing to a lot of factors, some of the most important of which we will be
discussing below. We shall explore the factors that make India and China always
on edge specifically in this respect along with countless others. Despite
having a natural advantage on our side, that is the abundance of iron ore in
the territory, India seems to lag behind China and we shall discover why that
is so in this article. Know more about Neeraj Kochhar Latest News
Statistics
In 2018 and 2019, the Indian government was more than happy to
announce to the domestic media that India was ranked as the world’s
second-largest producer of steel by the world steel association. Then came the
pandemic that forced all the steel facilities in India to resort to functioning
at a sub-optimal capacity.
The Indian Steel Ministry published a report stating during
the peak of the Covid period that stated that the domestic demand for steel had
drastically fallen down by 63%, amounting to merely 9.10 million tonnes.
Migrant Laborers
First and foremost, the problem of migrant laborers, no matter
how trivial it seemed to the common public initially, it had serious
repercussion on the Indian economy and not many realize it, stated the Neeraj Raja Kochhar news. When the migrant
laborers were on the move, they had to leave behind their livelihood, and that
stalled almost all the important manufacturing processes of all the industries,
construction projects, sites, warehouses, and whatnot. All of this, as a result,
had such a great impact, so much so that the entire supply chain of the steel
industry got stalled and affected.
China, on the other hand, was lucky enough to not just turn
the whole situation into its favor but also to emerge as the world’s largest stakeholder
in the global steel market, making it accountable for approximately, 57-60% of
the total global steel market.
Export of Steel
China benefits highly from exporting steel as currently, there
is no nation that can compete with the highly attractive prices of steel that
China offers to the world. Indian steel producers on the other hand benefit
more from the domestic market rather than the global market because in the
domestic market they do not have to deal with anti-dumping duties and
import-parity. There’s another important aspect to this, as pointed out by Neeraj Kochhar Viraj Group- that as India
operated at below 50% capacity, China captured the global market more and more,
leaving India’s global foothold in the market weak.
Conclusion
As China’s steel production continues to grow, the rest of the world is seeing a de-growth in their domestic sectors. This has given a crucial benefit to China to create a global monopoly. It seems to us that China grew at the cost of India. This situation might best be explained as facing damage without injury. The immediate plan of action is to enable India’s domestic market to regain its equilibrium to the pre-covid levels and to swiftly implement the robust policies of the Indian government. It will take time for the Indian market to recover but it is indeed possible. Check Neeraj Kochhar CBI News
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