Why is the iron and steel industry considered a basic industry? Explain its significance for other industries and the economy.
Answer:
Answer by Student
- Iron and steel industry is considered a basic industry because it provides raw material for many other industries like automobile, machinery, construction, etc.
-
Iron and steel industry
contributes to the economic development
of a country by providing employment, foreign exchange earnings, infrastructure, and technological advancement.
- Iron and steel industry also helps in the development of other industrie s like power, coal, transport, etc. that are dependent on it for their functioning.
Detailed Answer by Teachoo
- Iron and steel industry is considered a basic industry because it supplies raw material for many other industries that produce various goods and services for the society. Some of the industries that depend on iron and steel are:
- Automobile industry: It uses iron and steel to manufacture vehicles like cars, buses, trucks, etc.
- Machinery industry: It uses iron and steel to make machines and tools for various purposes like agriculture, manufacturing, mining, etc.
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Construction industry:
It uses iron and steel to build bridges, dams, buildings, roads, railways, etc.
- Iron and steel industry contributes to the economic development of a country by providing various benefits like:
- Employment: It generates direct and indirect employment for millions of people who work in the production, distribution, and consumption of iron and steel products.
- Foreign exchange earnings: It earns valuable foreign exchange for the country by exporting iron and steel products to other countries.
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Infrastructure:
It provides basic infrastructure like roads, railways, ports, etc. that facilitate the movement of goods and people within and outside the country.
- Technological advancement: It promotes technological innovation and research in the field of metallurgy and engineering that improve the quality and efficiency of iron and steel products.
- Iron and steel industry also helps in the development of other industries like power, coal, transport, etc. that are dependent on it for their functioning. For example:
- Power industry: It requires large amount of electricity to operate the furnaces and machines used in the iron and steel production. Thus, it creates demand for power generation and distribution.
- Coal industry: It supplies coal as a fuel for the furnaces used in iron and steel production. Thus, it creates demand for coal mining and transportation.
- Transport industry: It transports raw materials like iron ore, coal, limestone, etc. to the iron and steel plants and finished products like bars, rods, sheets, etc. to the markets. Thus, it creates demand for roadways, railways, waterways, etc.
