GS1 PYQ (Mains Answer Writing): Iron & Steel Industry | Geography for UPSC CSE PDF Download

Account for the present location of Iron and Steel industries away from the source of raw material, by giving examples. (UPSC GS1 Mains)

• The iron and steel industry is a basis for the development of a number of industries in the global economy: the Defence industry, transportation and heavy engineering, energy and construction (including aeronautical and shipping construction). 
• At global level in 2018, the world crude steel production reached 1789 million tonnes (mt) and showed a growth of 4.94% over 2017.China remained world’s largest crude steel producer in 2018 (928 mt) followed by India (106 mt), Japan (104 mt) and the USA (87 mt). 

Reasons behind it are away from its source of raw material: 

• Near Coastal regions: As iron and coal were depleted the need for imported coal and iron increased. This made factories to shift to newer areas in the coastal regions. The coastal factories depended on imported iron or coal and lowered cost of transportation from factory to port. Iron ore and coal producing regions have a bi-directional relationship. 
• The wagons that transported coal to iron ore regions would return empty so un-economical use. Hence the wagons would return with iron ore towards the coal producing regions. Thus in both these areas iron and coal industries flourished. E.g: Pittsburg-Lake Superior, Bokaro-Rourkela. 
• Modern Technology: New technologies available for steel production reduced the pull factor of coalmines. Modern technology such as electric smelters, open hearth system etc have helped in shifting steel industries away from coal and iron ore reserves by making efficient use of scrap metal and also reducing energy requirement. For example: Bhushan steel plant in Ghaziabad. 
• Oxygen converter process and electric smelters used less energy and now such mini-steel plants can be located away from mines and towards cities. Mini Steel plants are located in Eastern India and have a high gestation period. They are integrated complexes with the entire process from raw material processing to final conversion into alloys and steel products being done. 
• Mini Steel Plants are located near cities and they recycle waste steel to produce finished products. They avoid competition with integrated steel plants by locating away from them. 
• Strategic reasons: After WWll, USA and USSR adopted a policy to not allow concentration of industries in one region. Thus in USA some plants were setup in western region such as California and USSR and some in the eastern side towards pacific coast. India too used licensing to locate industries in backward areas as they might promote development. 

Conclusion

Even after local coal-iron resources are depleted, the Iron and steel industries do not frequently shift their location because of Industrial Inertia and reasons like: Labor is available abundantly and skilled in industrial areas.
But if the industry moves to a newer location such labor might not be available. Rail, road and transportation facilities towards markets and ports are well developed in the industrial locations. The same facilities aren’t developed in newer locations and so it is more convenient to import raw materials and modernize operations. Secondary industries don’t shift even when the primary industry might move. So the entrepreneurs are dissuaded from shifting their locations as it might affect their market base.

Topics covered - Drainage System of India