Production and consumption of steel is often regarded as the index of country's development explain
Answers
1. Steel goes into the production of maximum number of tems of capital equipment required tob produce all other goods. - So higher the steel production, greater is the production of capital equipments for raising the productve capacity of the country.
2. Steel is required for most buildings and construction work.and great demand for exports.
So, higher the steel output greater is the available material for earning through exports and greater is the availability of housing and office and factory premises of adequate strength.
3. Steel making consumes large amounts of energy and transportation . So greater the [production of steel, the greter is the demand on energy, coal mining, transportation and many other economic activities.
4. Steel enters into final goods of consmption of so many goods - cars, almirahs, tables, chairs, bed frames, utensils, storage facilities, watches, regfrigerators, shalfs, etc. So greater the production and consumption of steel, greater is the production and consumption of thousands of final goods for consumption.
To say in other words, Steeel has one of the highest forward and backward linkages for economic activity and growth Ther in lies the importance of steel industry.