The government has raised the export duty on iron ore. As per the recent declaration it has been increased to 15%. Earlier it was 10%. The Indian Finance Minister Pranab Mukherjee has said in parliament on this issue and has informed that the Government has decided to do so to shrink China's procurement from India.

By such move, the steel-making raw material will be hugely available for domestic steel makers of the country. Because the current market scenario of iron ore is quite disappointing in the domestic level. The country is facing a huge shortage in ore supplies.

The Finance Minister Mr. Mukherjee has also informed that the increase in the duty of iron ore is basically to tackle the prices of quantum of exports and domestic and international markets.

In December last year the duty on iron ore was increased to 10%. Before that the export tax on iron ore was only 5%.

The world's largest steelmaker China is highly dependant upon India. India has supplied 13.46 million tonnes of iron ore to China last year.