- Export duty on iron ore expected to come down to 20%
- Indian Rupee hits an all time low of 65.5 per USD
- Government looking to control Current Account Deficit (CAD) by promoting exports
- Indian steel industry and steel minister opposes any cut on exports of iron ore
Indian government may decrease the export duty on Iron ore from current 30% to 20% soon, according to sources related to this matter.This will help to decrease the Current Account Deficit (CAD), which has majorly impacted falling Indian currency. Indian Rupee touched an all time low of Rs 65.5 per USD on Thursday, making government to react soon to control this fall.
“We've agreed with the Commerce Ministry's proposal to cut the duty to 20%,” said Mines Minister Dinsha Patel. The Commerce Ministry recently sought the Steel Ministry's views on the proposal, a steel ministry official said adding that the finance ministry will take a final decision.
However, experts believe that cutting down of duty on iron ore will not help to increase exports in a significant way. Government should sort a way out to bring down the differential freight charge, which had been levied on exports of iron ore.
On the contrary, steelmakers like JSW Steel, along with Steel Minister Mr Beni Prasad Verma have raised their concerns over decrease in the export duty on Iron ore, stating it will affect the domestic Steel Industry. Capacity utilization of steel mills hits all time low by 82% in last fiscal, followed by mining bans at some states.
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