Steel: Strategic backbone of economic transformation and industrial growth

AT THE TURN of the 20th century, nations that industrialised rapidly and built strong steel industries gained a significant competitive edge.

- HD KUMARASWAMY

Steel was not only a product of the primary sector—rooted in mining and raw material processing—but also a vital input for the manufacturing sector, forming the foundation for industrial economies. Its dual role made it indispensable for any country on the path to sustainable development.

Following independence, India adopted the model of a mixed economy, aiming to build resilience across the primary, secondary, and tertiary sectors simultaneously. Steel emerged as a powerful enabler in this framework—connecting mining and raw material processing with high-end manufacturing and service sectors.

A critical contributor to India's economy Today, the Indian steel industry contributes directly to over 2% of the country's GDP, with its indirect impact being significantly larger due to its deep integration with allied industries. The sector is also a major source of employment, providing direct jobs to nearly half a million people and supporting over two million more through indirect roles in mining, transportation, logistics, and services.

The employment multiplier of the steel sector stands at an impressive 6.8x—meaning every direct job created in steel leads to nearly seven additional jobs across the economy. Its output multiplier is equally significant: for every unit of output generated, the broader economy gains approximately 1.4 times more.

As per the World Steel Association, for every two jobs created directly in the steel industry globally, 13 additional jobs are created across the supply chain, underscoring the industry's powerful role as a job multiplier and growth accelerator.