By expressing concern over the limited reserve of iron ore in the country the Parliamentary Panel recommended the government to explore the possibility of curbing iron ore exports to ensure availability of the key steel making raw material, as the domestic reserves may last only for 10 years more. The Parliamentary Panel chaired by Kalyan Banerjee said, 'the Committee is concerned to note that reserve of iron ore may last till 2021-22. With a view to conserving iron ore for long-term use of domestic steel industry and also to ensure its availability to them at an affordable price, the government must explore possibility of restricting the export of iron ore.'
The production of iron ore was more than the domestic consumption, as a result of which more than half of the output was exported. As per the government estimates, during last financial year, country’s iron ore production and exports were around 208 million tonne and 97.6 million tonne respectively. During 2009-10 country has exported around 117.37 million tonne of iron ore. India mostly exports iron ore to China and it has around 22% share in China’s total imports.
To restrict the exports of iron ore from India, the government has increased the exports duty on the exports of iron ore. It had increased the export duty by 5-20% from lumps and 5% for fines. However, the industrial bodies has opposed the recommendation of the Parliamentary Panel, by arguing that this would lead to up 35% decline in shipment and many job losses in the labour intensive mining sector.
Earlier according to the miners body Federation of Indian Mineral Industries, iron ore exports may fall by over 20% to around 75 million tonnes (MT) in the current fiscal as a result of hike in duty on overseas shipments. In the Budget for 2011-12, finance minister had raised export duty on fines four-fold to 20%.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: