The correct option is 2 and 3 only.
Explanation
The iron and steel industry is classified as a heavy industry and a basic industry. It forms the backbone of industrial development because its output serves as a critical input for various other sectors. The industry is characterized by the use of bulky, weight-losing raw materials and significant economic scale.
Statement-wise Analysis
- Statement 1 is Incorrect. The iron and steel industry is capital-intensive, not low-capital. It requires massive investment in infrastructure, blast furnaces, heavy machinery, power supply, and a large workforce. It is categorized as a heavy industry due to the scale of operations and investment required.
- Statement 2 is Correct. It is termed a "basic industry" because its products (iron and steel) provide the essential raw materials for other industries, such as heavy engineering, automobiles, construction, and defense manufacturing. It lays the foundation for the secondary sector.
- Statement 3 is Correct. The primary raw materials used in this industry-iron ore, coking coal, and limestone-are bulky and "weight-losing" (the weight of the finished product is less than the weight of the raw materials). To minimize the high cost of transporting these heavy inputs, integrated steel plants are typically located in close proximity to raw material sources.
Key Takeaway
Key Takeaway: The iron and steel industry is a capital-intensive, basic industry located near raw material sources due to the weight-losing nature of its inputs (iron ore and coal) to optimize transportation costs.