India is the second most populous country in the world and the fourth-largest steel producer in the world. Despite this, the per capita steel consumption in India is low compared to other countries. This article will explore the reasons why the per capita consumption of steel is low in India.
Low Per Capita Steel Consumption in India
The per capita steel consumption in India is lower than the global average and is among the lowest in the world. According to the World Steel Association, India’s per capita steel consumption in 2019 was 64 kg, while the global average was 208 kg. This low consumption is mainly due to India’s large population and the low per capita income.
Reasons for Low Steel Consumption
There are several reasons for the low per capita steel consumption in India.
- Low Per Capita Income: India has a low per capita income, which limits the ability of the average Indian to afford steel products. This leads to a lower demand for steel products in the country.
- Low Industrialization: India’s industrial sector is still in the development stage and is yet to reach its full potential. This has resulted in low demand for steel in India.
- Low Quality Steel: India produces a large amount of steel, but much of it is of low quality and not suitable for industrial use. This has resulted in a lower demand for steel in the country.
- Lack of Investment: The Indian government has not been able to attract enough foreign investment for the steel sector, which has resulted in a lower demand for steel in the country.
- Lack of Infrastructure: The lack of adequate infrastructure in India has also contributed to the low demand for steel in the country. This has resulted in a lower demand for steel products.
The low per capita steel consumption in India is due to a combination of factors, such as low per capita income, low industrialization, low quality steel, lack of investment, and lack of infrastructure. The Indian government needs to take steps to address these issues in order to increase the per capita steel consumption in the country.