Question

What recent developments have led to a rise in the production capacity of Iron and steel industry?

Answer 1

1) Production and consumption of steel is regarded as index of country’s development. In 2010 – 11, India ranked 4^th among the world crude steel producers with 72.2 million tonnes of steel production.

2) Mini steel plants are smaller and have electric furnaces. They use steel scrap, sponge iron and re – rollers that use steel ingots as well.

3) The development of the industry can be attributed to low cost of iron ore, high grade raw materials in proximity, cheap labour, vast growth potential in the home market etc.

4) Liberalisation policy and foreign direct investment have given a boost to the industry with the efforts of private entrepreneurs