India's Iron Ore Exports To Remain On Track.

India's iron ore exports may have got into trouble with a 20 per cent increase in export taxes but the biggest re-construction exercise in quake ravaged Japan is making amends to this deficit in profit to the companies engaged in exports.

With rapid increase in construction, industrial, transportation sector and expanding consumer markets the domestic demand for iron-ore has been increasingly rapidly. An import duty of 5% on iron-ore which is much lower than that of exports has increased the focus of steel and mining industry in the domestic market and is the main factor that can hit the exporters.

This has been a cause of great concern for the Indian shipping and mining industry too which is going to adversely effect particular regions like Goa that produce low quality iron ore which has no domestic market. However, the global demand for iron-ore may increase due to rebuilding in Japan and it is expected that with increase in trade and rapid expansion of Indian economy, the exports would eventually increase attracting many foreign as well as domestic investors.

India being third largest producer of iron ore and fourth largest consumer will tend to witness an increase in the demand of steel both in the domestic as well as international markets.

Source : balkans.com