Question

i. Why is the iron and steel industry called a basic industry?
ii. Define a mini steel plant.

Answer 1

i. Iron and steel industry is called the basic industry due to following reasons:

a. All industries whether heavy, medium or light depend on it for the machinery. Thus, it provides a base to the other industries.

b. Steel is required for manufacturing variety of engineering, construction and defense goods. Various ship building industries, aircrafts, transport equipments, etc require steel which is a finished product of the iron and steel industry. Steel is also used to make a host of consumer goods.

ii. Mini steel plants are those which use ferrous scrap, pig iron or sponge iron as their raw material. Their period of construction and gestation is also short.