In a bid to give impetus to the export of steel and iron ore items, the government on Friday removed export duty on those steel products and iron ore imposed in the month of May this year with effect from Saturday, Finance Ministry notification said.
“…. on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments ….,” the notification said.
Export duty on high grade ore and pellets has been decreased to nil. In the same way, 15% export duty imposed on pig iron, hot-rolled and cold-rolled alloy and non-alloy flat steel products of 600mm or more in width has also been reduced to nil.
“Domestic steel industry is grateful to the Prime Minister of India for taking the decision to withdraw the export duty imposed on iron and steel items on May 21, 2022. We are also thankful to the Union Ministers of Finance, Commerce and Steel for supporting the industry. This will re-energise and further motivate the industry to move forward with full confidence to put steel sector towards an inclusive growth path,” said Mr. Dilip Oommen, President, Indian Steel Association and, CEO, ArcelorMittal Nippon Steel India and Executive Vice President, ArcelorMittal.
“Decision to withdraw the export duty imposed on Iron and Steel items, immediately once the inflation numbers came to reasonable level shows the concern of the Government of India towards common man and the Industry,” said Mr Alok Sahay Secretary -General, Indian Steel Association.
Indian steel exports dipped significantly by 53% in April-September of FY 23 to 5 million tonnes (mnt) against almost 11 mnt in the same period of FY 22. Flat steel exports fell 44% to 3.66 mnt (6.53 mnt) y-o-y, semis declined 66% to 1 mnt (3 mnt) and longs by 69% to 0.43 mnt (1.40 mnt) during the first half of FY23.
Exports of iron ore and pellets in the first half of FY23 stood at 6.98 mnt, witnessing a steep decline by 63% from 18.91 mnt in the same period of previous year.