Rural India, home to nearly 65 per cent of the country’s population, has long faced challenges in economic development and access to opportunities. Despite the progress in the past few decades, the majority of rural India still deals with issues related to infrastructure, limited employment opportunities and gaps in the education and healthcare system. Many Indian industries have stepped up to the challenge of developing the rural regions and communities and have initiated efforts towards improved infrastructure, socio-economic development and creating sustainable livelihood within the community.

Capital intensive heavy engineering and manufacturing sectors like steel are making a big impact as an engine of economic growth and play a vital role in socio-economic development of rural areas where many of its operations are based. India’s steel sector has helped to transform rural landscapes, not only through infrastructure development but also by creating jobs, skill development, and supporting community welfare initiatives. These changes are pivotal in uplifting rural communities across the country.

Infrastructure development: A catalyst for growth

The presence of steel plants leads to a wave of infrastructure development in rural areas. Roads, railways, and ports are expanded or upgraded to support the transportation needs of the plants. In fact, over 60,000 km of rural roads have been constructed in areas surrounding steel plants, particularly in the states of Odisha, Jharkhand, and Chhattisgarh, to enhance the logistics of the steel industry. The construction of employee housing, schools, hospitals, and community centres in these regions creates a ripple effect that benefits the entire rural community.

The demand for continuous and reliable power supply for steel production also leads to the development of power plants and the expansion of electricity grids in rural areas. These developments bring not only immediate economic benefits but are also sustainable in the long run.

Job creation and skill development
The steel industry is a major employer in India, directly and indirectly providing livelihoods to rural communities. With around 2.5 million people employed directly, according to the Ministry of Steel, Government of India, prominent stainless steel players, such as Viraj Profiles, create substantial employment opportunities across various sectors, including manufacturing, logistics, and sales. Additionally, the industry stimulates job demand in ancillary and support services, such as transportation, hospitality, and construction, contributing to an estimated total employment of over 8 million people when including indirect roles.

Considering the technical aspects of the steel industry, a skilled and capable workforce is effectively employed with decent salaries. Companies also upskill semi-skilled and unskilled labour through apprenticeship and in-house training programmes, thereby increasing household incomes and standards of living. This not only boosts the local economy but also helps in reducing rural-urban migration.

CSR initiatives and community welfare

Many Indian steel companies are deeply engaged in CSR activities and committed to the upliftment of communities. The majority of players in the steel sector actively take part in such community welfare programmes that address healthcare, education, sanitation, and women’s empowerment in the villages near their operations. These efforts are focused on improving living standards and creating long-term socio-economic upliftment in the communities.

Rural development with environmental sustainability
The steel industry, which is conventionally considered a high-pollution sector globally, is now consciously working on changing the game. The emergence of the green steel concept and a conscious effort towards Near & Net Zero combined with sustainable rural development adds an edge to the sector. Using energy-efficient technologies, renewable energy for manufacturing, and recycling steel are efforts to reduce environmental impacts from steel production while making sure that local communities benefit from cleaner and more sustainable development. Recently, Viraj Profiles commissioned a 130 MW DC Solar Power plant which is fulfilling 40 per cent of its energy requirement.

Empowering rural communities

The steel sector plays a broader role in empowering rural communities. By bringing industrial growth to remote areas, the industry is reshaping traditional agrarian economies. In regions surrounding steel plants, household incomes have risen by 30-40 per cent due to the influx of jobs and business opportunities related to the steel industry. Additionally, access to basic amenities such as electricity, water supply, and education has significantly improved for over 3 million people in these rural areas. This transition from dependence on agriculture to a more diversified economy, coupled with the industry’s conscious efforts to reduce its carbon footprint, creates a promising future for empowering rural regions and bridging the urban-rural divide.