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Account for the present location of Iron and steel industries away from the source of raw material, by giving examples.

Iron and Steel Industry (ISI) forms the backbone of the industrial sector as it serves as a key input material to many industries. Today, India stands as the second largest producer of steel in the world.

Initially they were located close to the source of raw materials, namely coal, water, and limestone. However, there has been a shift away from the raw material source.

Reasons behind the shift:

1. Poor quality of coal and iron ore necessitates import of better-quality raw materials. Hence located near ports. E.g.: Vizag steel plant

2. Well-developed road and rail network enable easy transport of raw material and finished goods.

3. Location near ports for export. E.g.: Ratnagiri steel imported from goa.

4. Located closer to major domestic markets to lower transport costs and promote manufacturing.

5. Improvement in technology like electric arc furnace has removed the need to be located near raw materials 

ISI is a keystone industry with tremendous economic implications in backward and forward linkages. The Government of India came up with National steel policy 2017 to create a globally competitive steel industry in India. 


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