Federation of Indian Mineral industries (FIMI) said on Tuesday, July 30, 2013, that India will become the net importer of Iron ore in FY 14 owing to the decreasing exports followed by low production of the material in the country. The mining operations being banned in the two major states such as Karnataka and Goa have decreased the total production rate of iron ore in India. Consequently, exports of the material has also declined drastically.
India was the world’s third largest iron ore exporter. The country can resume back with its exports if the government looks after the problem with more attention and give approvals for the forest clearances.
“Manufacturing has a big role in a country’s economy and the growth of the sector depends on the mining sector for raw materials. Now, we are in need of a policy environment which ensures the prosperity of the mining sector. There is an urgent need for speedy forest, environment and other necessary clearances for pending or new mining licenses. Fiscal policies also need to be re-looked at.” says, FIMI’s President H.C.Daga. He further added that the fiscal policies need to be reversed to time before 2010 to improve the present situation.
Iron ore is presently imported in the form of iron pellets and lumps. In FY 13 total imports of the materials were about 3 MnT which are expected to reach about 20-24 MnT this fiscal. In spite of having its own resources and huge production capacity it sounds strange to import material in such a huge amount.