Role of iron and steel industry in the promotion of Indian economy¬: A study
R Settu, Dr. K Padhmanaban
India’s economic growth is contingent upon the growth of the Indian Steel Industry. The iron and steel industry is often considered as the backbone of the economy, depicting the development and performance of the economy. Indian economy is in need of a device to boost employment opportunities, raise income and its standards of living and to bring a more balanced and integrated economy. Steel industry is the best solution for achieving all these goals. The prevailing capital for the promotion of steel industries and the plentiful supply of labour largely favour the development of steel industries. Hence, this sector of industry is playing a vital part in the economic structure in India. The Iron and Steel Industry in India contributes around 2 per cent of the Gross Domestic Product (GDP) and its weight in the Index of Industrial Production (IIP) is 6.2 per cent. India is also a leading producer of sponge iron with a host of coal based units, located in the mineral rich states of the country. Per capita consumption of steel in India is at 59kgs as against an average of 216kgs of the world and also the GDP growth rates in India reducing between 2005-06 to 2011-12. Even though Iron and Steel industry of India facing some challenges, The Government and Non – government organization give more concentration to improve Iron and steel authority of India.