Corrosion is costing the Indian economy an estimated ₹14.15 lakh crore annually,
which is 4.3% of the country’s Gross Domestic Product (GDP), according to a recent
Nomura report which also shows the major economic impact of deterioration of
critical infrastructure and industrial assets.
Corrosion affects highways, bridges, railways, power infrastructure,
telecommunications, buildings and industrial facilities, resulting in premature asset
deterioration, increased maintenance expenditure, productivity losses and higher
replacement costs, the report says.
Power has the highest economic burden among the sectors, with corrosion-related
losses estimated to be 10.1% of sectoral GDP, followed by telecommunications
(3.8%), automobiles (3.0%) and railways (2.8%).
According to the report, India’s corrosion-related losses are significantly higher than
those in many developed economies due to climatic conditions, extensive coastline,
high humidity, industrial pollution and varying environmental exposure across the
country.
The study suggests that global standard corrosion control and preventive measures
could increase India’s GDP by up to 1.5% and there are the economic benefits of
The report also indicates that infrastructure projects in India are generally
implemented in a uniform way despite significant differences in climatic conditions
across regions. Heavy-humidity, coastal and industrial conditions lead to more
aggressive corrosion and faster deterioration, which leads to higher maintenance
needs.
The study also highlights the imperative for preventive corrosion management
through better engineering standards, better compliance mechanisms, periodic
inspection and maintenance practices and wider adoption of internationally accepted
corrosion protection technologies for different operating environments.
With India leading the world in infrastructure development, the report indicates that
improving durability and extending public asset service life will be important to
maximising returns on infrastructure investments while reducing the long-term
economic burden of corrosion.