Steel is an important component in the development of infrastructure and further economic growth of a country. India is the second largest producer of steel in the world, however, the per capita steel consumption in India is lower than other major countries. This article explores the reasons behind India’s low per capita steel consumption.
Low Steel Consumption in India
India is the world’s second largest steel producer and accounts for 6.6% of the world’s total steel production. Despite this, India’s per capita steel consumption is far lower than other major countries such as China, Japan, South Korea and the United States. India’s per capita steel consumption is only around 61 kilograms per person, compared to the world average of 208 kilograms.
Reasons Behind Low Per Capita Steel Consumption
There are several factors that contribute to India’s low per capita steel consumption. One of the main factors is India’s low GDP per capita. India’s GDP per capita of $1,939 is much lower than the world average of $10,567. This means that India’s population has less disposable income to spend on steel products.
Another factor is India’s low urbanization rate. India’s urbanization rate of 31.2% is much lower than the world average of 54%. Urbanization drives the demand for steel products such as infrastructure, construction materials, and appliances. As India’s urbanization rate is lower, the demand for steel products is also lower.
Finally, India’s population of 1.3 billion people also contributes to the low per capita steel consumption. India’s population is much higher than other major countries, and this means that the demand for steel products is spread across a larger population.
In conclusion, India’s low GDP per capita, low urbanization rate, and large population are the main factors that contribute to India’s low per capita steel consumption. The Indian government must focus on improving the country’s economic conditions and urbanization rate in order to increase the demand for steel products.
