ASSOCHAM today urged the government to increase iron ore supply for domestic steel industry.

“Industry is currently running at an all time low utilization level in the country as such a move would bring down steel imports worth a whopping six billion dollars, promote steel exports and curb the ever-rising current account deficit (CAD)”.said a press release issued by ASSOCHAM..

“Iron ore exports of a 100 million tonne (mt) would earn India $10 billion while the country would earn $8-9 billion through exports of just 10 mt steel, besides value addition to the raw material would lead to employment generation, capacity building and various other benefits,” highlighted a study titled ‘Iron Ore Exports: Threat for Indian Steel Industry,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“Rupee depreciation has made domestic steel sector 22 per cent more competitive thereby giving a huge impetus to the finished steel exports as such relaxing the exports restrictions on iron ore would further worsen India’s CAD,” said an ASSOCHAM spokesperson while releasing the study.