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Steel plays a crucial role in the economic development of a nation. There is an urgent need for long-term planning in steel industry of a developing economy. The present study takes a systems view of Indian steel industry and attempts to analyse and forecast the important elements of this systems with the help of an econometric simulation model. The primary aim of the study is to help the planning process by supplying the input information in advance as to what are the likely annual requirements of steel in India upto the year 2005 and how much of each input shall be needed to produce the desired quantity of steel during each year at minimum possible cost. The study has, thus, made significant contribution towards developing a better methodology for research on Indian industries and has applied this methodology to analyse the system of Indian steel industry.
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