According to Gujarat Induction Furnace Association, well over 7,000 workers of the steel furnace industry in Gujarat have become jobless in last three months.
On Monday, September 2, it was reported that the growth of the country’s eight core industries has plunged, according to the official data, to 2.1% in July as against 7.3% in the same period last year. This included the steel sector industry which has registered a decline in production growth rate to 6.6%.
Here are some fresh numbers speaking about the consequences of the industrial dip over the livelihoods of the workers.
Well over 7,000 workers of the steel furnace industry in Gujarat have become jobless in the last three months. The figures were presented by the Gujarat Induction Furnace Association on Tuesday, adding that it is due to heavy decrease in the demand within the steel industry, among other things. The industry that is engaged with iron scraps is the latest one to report job cuts due to the economic crisis.
Inamul Haq Iraki, President of Gujarat Induction Furnace Association told NewsClick that this was bound to happen. He commented, “The effect on the steel furnace industry is a chain reaction caused by the downturn in the auto industry.”
“As there is a crisis in industries that consume steel, a demand slump can be observed in the steel industry,” he said, “as a result of which we have been hit tremendously as well.” Going further by the figures presented by the credit rating agency ICRA, the steel consumption in India is likely to grow at the slowest pace in the next three years.
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