The present disclosure discloses a method for heat treating an iron-carbon alloy. The method comprises acts of heating the iron-carbon alloy to a first pre-determined temperature at a pre-determined heating rate, holding the iron-carbon alloy at the first pre-determined temperature for a pre-set period of time. The method further comprises acts of cooling the iron-carbon alloy to a second pre-determined temperature at a pre-determined cooling rate and inducing magnetic field on the iron-carbon alloy selectively during at least one of heating and cooling of the iron-carbon alloy. The induction of magnetic field on the iron-carbon alloy results in microstructural changes to improve formation of pearlitic structure in the iron-carbon alloy.