**Iron and steel are basic industries.**

**Explanation:**

**What are Basic Industries?**
Basic industries are those industries that provide the necessary raw materials for other industries and contribute to the overall growth and development of the economy.

**Iron and Steel - A Basic Industry:**
Iron and steel industry is considered a basic industry because it plays a crucial role in the development of various sectors of the economy. It is the foundation and backbone of industrialization and is involved in the production of essential goods required by other industries.

**Raw Material Production:**
1. Iron and steel industry is involved in the extraction of iron ore and coal, which are the primary raw materials required for the production of iron and steel.
2. Iron ore is mined from iron ore reserves and coal is obtained from coal mines.
3. These raw materials undergo various processes like mining, beneficiation, and transportation before they are used in the production of iron and steel.

**Iron and Steel Production:**
1. The iron and steel industry involves the conversion of iron ore into iron, and then further processing it to produce steel.
2. Iron ore is smelted in blast furnaces where it is heated with coke (produced from coal) and limestone to remove impurities and obtain pig iron.
3. The pig iron is then converted into steel through various processes like basic oxygen furnace or electric arc furnace.

**Contribution to Economy:**
1. The iron and steel industry provides the necessary raw materials for the manufacturing of various products like automobiles, machinery, construction materials, etc.
2. It contributes significantly to the GDP (Gross Domestic Product) and employment generation.
3. The industry also has a multiplier effect as it creates demand for other industries like mining, transportation, machinery, etc.
4. It promotes economic growth, export potential, and infrastructure development.

**Conclusion:**
Iron and steel industry is classified as a basic industry because it is involved in the production of essential raw materials required by other industries. It supports industrialization, contributes to the economy, and plays a vital role in the overall development of the country.