India’s import of iron ore are likely to shrink to 5 million tons (mt) in the current FY 2015-16, compared with 15 mt in 2014-15 due to surplus availability of iron ore in the domestic market.
India’s iron ore output is estimated to be 153 mt by the end of FY16, up from 123 mt in the previous financial year. Subdued demand in steel and the falling rupee will also play a role in pulling down imports.
Odisha, the biggest ore producer, is tipped to contribute 42.5%of the country's overall iron ore output in FY16. Odisha's iron ore production is pegged at 65 mt in the current financial year, up from 47 mt a year ago. Ore output in Chhattisgarh would move up marginally from 31 mt to 33 mt this year. For Karnataka and Jharkhand, too, the growth is projected to be modest. Karnataka’s ore output is projected at 24 mt (from 21 mt in FY15), while Jharkhand is expected to improve its tally from 17 mt to 19 mt. Goa, which produces low-grade ore, would add 5 mt from zero level.