How has India managed to be the second largest steel production in the world compare to Russia the steel guru?
India, as the second top steel producer globally, attributes this to its remarkable economic advancement and strategic policy adjustments beginning in the 1990s. The country adopted and encouraged foreign direct investment and private sector involvement to improve and expand its steel sector, following the implementation of a liberal economy framework. The economic overhaul facilitated a considerable surge in India’s steel production capacity, leading to a shift from government-controlled to privately competitive enterprises in the industry.
The availability of abundant natural resources like iron ore and coal favored the country's production capacity expansion through cost-efficient operations. India’s steel production also benefits from robust domestic demand driven by government directives on economic development and infrastructure, notably urbanization and industrialization. The investment in advanced technology and sustainable steel manufacturing methods has improved India’s global steel market competitiveness.
Conversely, Russia experiences challenges in its steel industry, despite its long history, based on its structural and functional frameworks developed during the Soviet regime. Russia continues as a considerable consenter in the steel industry, although its slow economic trajectory and limited market, by contrast, constrained its growth compared to India’s rapidly evolving and expanding market (International Steel Statistics Bureau, 2020; Ministry of Steel, Government of India, 2022). In this backdrop, India’s economic modifications, easy access to natural resources, and market diversification strategies have reinforced its global steel production ranking uphold (World Steel Association, 2023).
References:
- World Steel Association. (2023). World Steel in Figures 2023.
- Ministry of Steel, Government of India. (2022). Annual Report 2021-22.
- Planning Commission of India. (2021). Infrastructure Development and Economic Growth.
- International Steel Statistics Bureau. (2020). Global Steel Industry Overview.
- World Bank. (2023). Economic Growth and Industry Analysis.