Steel: Strategic backbone of India's industrial growth, economic transformation

At the turn of the 20th century, nations that industrialized rapidly and built strong steel industries gained a significant competitive edge.

- H D 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 its Independence, India adopted the model of a mixed economy, aiming to build resilience across 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 Today, the Indian steel industry contributes directly over 2 per cent of the country's GDP (gross domestic product), 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 2 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.