World Bank: India may take two-decades to match up China’s metal consumption

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World Bank

It will take approximately two decades for India to leave behind China's current level of utilisation, even if the country's consumption of refined metal like aluminum, copper, nickel and zinc strengthen at 15% per annum, World Bank said today.

China's allocation of global metal intake grew from just 5% in 1990 to 41% now, said the World Bank report Global Economic Prospects. During the period under review, India's share went up to 3% from 2% in 1990, it said.

Chinese metal use was strengthened by construction, infrastructure and manufacturing sectors. On the other hand, India's poor figure is "due to the very different structure of the economy, levels and direction of investment, sector growth trends, trade and policies", it added.

"Unquestionably, China has been the major driver of metals demand and higher prices," the report added. It said metal demand would slow in China over the next decade as economic growth slows. The country is going through the transition of an export-led and investment-driven economy to a domestic consumption and services economy.

"Still metals demand will remain robust due to urbanisation (more high-rise construction), infrastructure needs, and moving up the value chain in manufacturing," it said.

"India has ambitious plans for growth and has unveiled a significant power generation programme. Thus, a key question is what other policy and structural changes would need to take lace to have India's metal consumption growth double for the next twenty years," the report elaborated.