With an aim to protect the domestic industry, the government is mulling hike in import duty on iron ore, as lower import duty encourages steel players to go for import rather than utilising the local ore. Iron ore is a key raw material used in the steel making.
The matter is under discussion among different ministries including steel. Besides, the government is also considering to cut export duty on iron ore and the commerce and industry ministry has sought views of steel and mines ministry on the issue. Recently, the Karnataka government informed regarding issues of the sector in the state and sought a hike in the import duty on the mineral.
Meanwhile, iron ore exports in 2017-18 dipped to $ 1.47 billion from $ 1.53 billion in the previous fiscal. Karnataka is the largest iron ore producing state in the country. The other major producers include Orissa, Chhattisgarh, Goa and Jharkhand.