India stands out as the sole nation among the leading steel producers globally to witness a surge in steel production in April this year, as per data gathered by the World Steel Association. Ranking second only to China, India accomplished a remarkable production of 12.1 million tonnes of steel, marking a notable 3.6 percent increase compared to the corresponding period of the preceding year. This increase in steel production by India is attributed by analysts to the increased economic momentum reigning in the country.
This increase in steel production is mainly attributed to the large-scale infrastructure projects in the area of roads, railways, and ports undertaken by the government to spur growth and generate employment in the country.
These projects alone require large quantities of steel as a major component. Simultaneously, the increased demand for automobiles like cars, two-wheelers, and commercial vehicles, which is on an increasing trend in the economy, further fuels the demand for steel as a raw material.
The emergence of India as a beacon of economic resilience in the face of a worldwide slowdown is clearly reflected in its sterling performance in the steel sector. In contrast, the figures released by the World Steel Association reflect a fall in steel production in various other large economies. Japan, for instance, experienced a fall to 7.1 million tonnes (MT), a slump of 2.5 percent. Similarly, the United States experienced a 2.8 percent fall with a production of 6.7 MT. Russia and South Korea, too, followed with a fall of 5.7 percent and 10.4 percent respectively, with a production of 6.2 MT and 5.1 MT of steel.
In contrast, China, known for its humongous steel overcapacity, had to bear a 7 percent fall in production to 85.9 million tonnes. A huge imposition by the United States in the form of tariffs on Chinese steel exports only added to the woes of China, raising apprehensions of possible dumping of surplus steel at cheaper rates in other markets. The global situation thus underlined India's remarkable resilience and promise of sustained growth in the steel sector.
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