The Indian government has increased the export duty on iron ore by five percent both for iron ore fines and lumps, aiming at curbing iron ore exports.
According to a notification released by the Indian Finance Ministry, the government has raised export duty on iron ore lumps to 10 percent from five percent and on iron ore fines to five percent from nil.
India, with its annual iron ore output exceeding 200 million metric tons, ranks fourth among the largest iron ore producers. In 2008-09 Indian fiscal year, the country's iron ore exports amounted to 105 million metric tons.
However, the Indian steel industry is one of the fastest developing steel industries in the world, following China. Despite the global economic downturn which had serious impact on world steel industry, in the first eleven months of 2009, India increased its crude steel output by 2.4 percent year on year to 51.2 million metric tons. Being one of the top five steel producers, India has growing needs for iron ore.