The iron and steel industry is called the basic industry because of the following reasons: (i) All the other industries — heavy, medium and light, depend on this industry for their machinery. (ii) Steel is needed to manufacture a variety of engineering goods, construction material, defense, medical, telephonic, scientific equipment and variety of consumer goods. (iii) This industry contributes a lot in providing employment opportunities to the people. (iv) It helps in the development of agriculture.