Beijing, July 8 (IANS) It is doubtful if India can really realize its dream of becoming a global steel producing colossus, a Chinese newspaper said on Friday.
While steel firms in many parts of the world are experiencing a painful process to cut overcapacity, New Delhi is looking to significantly expand its domestic steel sector, the Global Times reported.
Prime Minister Narendra Modi said last year that India must surpass China in steel production, it noted, adding New Delhi wants to almost triple the size of its steel industry over the next decade.
“The Modi administration’s clear ambition to turn India into the world’s factory makes the promotion of India’s domestic steel industry development absolutely necessary, but it is doubtful whether the Indian government is strong enough to promote this grand strategy…
“India’s democratic system may leave the government with limited power to raise sufficient capital for investment in profitable industries.”
The daily said it seemed India was seeking to boost its domestic steel industry with some help from trade protectionism, “making China a primary victim of Indian trade investigations.
“It is true that protecting Indian steel firms from intense international competition can buy some time for the industry’s domestic expansion.
“But such moves will reduce India’s competitiveness in the long run,” it added.
Citing how China in its early stage of industrialization boosted bilateral trade and attracted investment from the US, the Times asked: “Why can’t New Delhi consider adopting similar open-mindedness toward China?”