India loses an estimated 4.3% of GDP to corrosion annually, with power, infrastructure, telecom and railways among the worst-hit sectors. Better corrosion management could save nearly Rs 5 trillion a year, according to Nomura Research Institute.
India is losing an estimated Rs 14.1 trillion ($180 billion) every year due to corrosion, equivalent to around 4.3 per cent of the country’s GDP, according to a report by the Nomura Research Institute (NRI).
The report, Built to Last: Adopting Global Best Practices to Reduce Corrosion Losses in India’s Infrastructure, estimates India’s corrosion-related economic burden is significantly higher than the global average of 3.4 per cent of GDP.
It argues that adopting better corrosion-management practices could potentially improve India’s GDP by around 1.5 per cent, translating into annual savings of nearly $63 billion, or about Rs 5 trillion.
Power and infrastructure among worst hit
The power generation and transmission sector has the highest corrosion intensity, with losses estimated at 10.1 per cent of sectoral GDP. With India rapidly expanding renewable energy capacity and transmission infrastructure, the report calls for stronger corrosion protection to improve the lifespan and reliability of assets.
Indian Railways, meanwhile, suffers estimated corrosion-related losses of around $3 billion (Rs 23,788 crore) annually. The report recommends moving from periodic repainting towards longer-lasting corrosion-protection systems and preventive maintenance.
More from BusinessTelecom infrastructure is another vulnerable area. India has more than 813,000 telecom towers supporting nearly 2.95 million base transceiver stations, making stronger protection and periodic inspections increasingly important.
The report also flags corrosion risks across roads, bridges, buildings and the automotive sector.
Rs 5 trillion savings opportunity
Nomura Research Institute recommends shifting public infrastructure projects towards lifecycle-cost analysis rather than focusing primarily on upfront construction costs. It also calls for stronger BIS standards, modern testing and inspection systems, better maintenance practices and greater use of corrosion-resistant materials.
As India ramps up spending on roads, railways, housing, renewable energy and other infrastructure, the report argues that corrosion should increasingly be treated as an economic and policy challenge rather than merely an engineering problem.
