India Raises Export Duties on Iron Ore by 5 Percent

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Dec. 29 – In an attempt to curb exports and feed growing domestic demand for iron ore, the Indian government has increased the export duty on iron ore by 5 percent.

According the Indian Finance Ministry, the government has raised export duty on iron ore lumps to 10 percent from 5 percent and on iron ore fines to 5 percent from zero.

India’s annual iron ore output exceeds 200 million metric tons and the country ranks fourth among the largest iron ore producers. In the 2008-09 Indian fiscal year, iron ore exports amounted to 105 million metric tons.

India currently has one of the fastest developing steel industries in the world, following China. In the first 11 months of 2009, India increased its crude steel output by 2.4 percent year on year to 51.2 million metric tons.

Despite the global economic downturn which had serious impact on world steel industry Being one of the top five steel producers, India has growing needs for iron ore.