The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has stated that the Indian government's decision to increase iron ore export duty from 20 to 30 percent will contribute to preserving iron ore resources to meet growing domestic steel demand.
According to ASSOCHAM's statement, a nine percent growth in GDP will create demand for 113 million mt of steel and 206 million mt of iron ore by 2016-17 as the country launches several infrastructure projects. Current annual domestic production of iron ore is 208 million mt, 98 million mt of which is exported.
Meanwhile, India's largest iron ore exporter Sesa Goa is facing a possible downgrading in its credit rating, as the international credit rating agency Moody's has stated that the company will lose a significant export volume due to the increase in iron ore export duty.