India plans to introduce a 30% export duty on low-grade iron ore

The country seeks to secure raw materials for local metallurgists and lower prices

India plans to introduce a 30% export duty on low-grade iron ore from October this year, according to The Financial Express.

In this way, the country seeks to secure raw materials for steel producers, lower prices, and stimulate value-added exports

In the 2024/2025 financial year, the country exported about 30 million tons of iron ore (48 million tons in the previous financial year). Most of the exports were fine or low-grade ores, which are not subject to export duties. Higher-grade products – lump ore – are subject to a 30% export duty. However, their share in the export basket is minimal, as this raw material is used by domestic steel mills.

The proposed move has been welcomed by the steel industry, while the mining sector has not yet openly opposed it. The Federation of Indian Mineral Industries (FIMI) will soon submit a memorandum to the government emphasizing that there is no shortage of iron ore for domestic consumption despite exports. In the 2024/2025 financial year, there was a surplus of 14 million tons, and in the 2025/2026 financial year, it is projected to increase to 35 million tons, taking into account the growth in production.

The mining sector also notes that if the government introduces the proposed duty, there are risks of an excess of low-grade ore in mines, a reduction in state royalties, and new trade challenges. At the same time, this step will do little to improve the quality of raw materials that Indian metallurgists actually need.

The introduction of duties to restrict iron ore exports and stimulate value creation is not new for India, the publication notes. The government has repeatedly used this tactic, but in most cases has abandoned it. In May 2022, the country raised export duties on iron ore to 50% to meet growing local demand. However, six months later, in November, it was abolished.

As GMK Center reported earlier, in the 2024/2025 financial year (which ended in April 2025), India increased its iron ore production by 4.3% year-on-year to 289 million tons. This figure is a historic high, surpassing the previous record set in the 2023/2024 fiscal year (277 million tons).