Kolkata: Rust ruins iron. We are all aware of it in out everyday life. But do we have any idea as to how much does rust cost the Indian economy? Well, Japanese global brokerage Nomura has now put a figure to it. It has said India suffers an economic loss of about Rs 14 lakh crore annually due to corrosion, which represents 4.3% of the country’s GDP. The report claims that improved corrosion protection measures could increase GDP by up to 1.5%. The sectors most affected are power generation, power transmission, railways and infrastructure. Put in simpler words, rust cuts down the life of bridges, roads, railways, ports, power infrastructure, buildings and industrial assets. By adversely impacting infrastructure, the silent yellow enemy impacts the country’s economic growth, government spending not to speak of public safety. The report states that if corrosion prevention measures are implemented in accordance with global standards, the country could reap significant economic benefits.
According to the Nomura report, the power generation and power transmission sectors are facing the most damage due to corrosion. Telecommunications, automotive, infrastructure and railways are the most affected sectors, followed by the most affected sectors. Experts believe that premature damage in these sectors leads to significant repair and replacement costs, further straining government finances.
The report states that corrosion damage in India is higher than in many countries globally. This could pose a significant risk to the country’s economic growth in the future. Nomura estimates that if effective corrosion protection technologies are made mandatory, India’s GDP could increase by up to 1.5%. This would increase the lifespan of infrastructure, reduce maintenance costs and enable better use of public resources.
Citing the example of the US and Japan, Nomura states that infrastructure in those countries is categorised based on environmental conditions and that corrosion protection standards are set accordingly. In contrast, most projects in India adhere to similar standards despite varying climatic conditions. According to the report, high humidity during the monsoon season and the presence of salt in coastal areas significantly accelerate the corrosion process, necessitating special protective measures in such areas.
Nomura observed that BIS or the Bureau of Indian Standards has provided some guidelines for corrosion protection, but these do not specify which technology should be used in which circumstances. For example, while technologies such as zinc coating, epoxy coating, hot-dip galvanization, and weathering steel are mentioned, there are no clear guidelines for their use based on climatic or geographical conditions. Consequently, contractors often adhere to only minimum standards.
The brokerage stated that roads and bridges, especially in high-traffic and corrosion-prone areas, deteriorate rapidly due to water, pollution, and heavy vehicles. Lack of timely corrosion protection shortens their lifespan, increasing the risk of accidents and causing significant damage to public property.
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Avijit Ghosal has been writing on topics of business, industry and investment for the past three decades. He also writes on the broad economy, infrastructure and issues in banking. He has worked for economic dailies such as the Business Standard, The Economic Times, business magazines such as Business Today, English broadsheet the Hindustan Times and Bengali daily Anandabazar Patrika before joining TV9 Network.