The central government is seriously considering reducing the export duty on cast iron. In May last year, the central government had imposed an export duty on steel to control domestic prices.
Union Iron and Steel Minister Jyotiraditya Scindia said in a program held in Delhi on Tuesday: The Ministry and the Central Government are seriously considering reducing the export tax on cast iron. A decision regarding this will be taken soon. I have written a letter to the Finance Ministry regarding the various issues faced by the steel industry. He said that the next phase of consultation will be held soon with the Finance Minister and the Central Government.
On May 21, the central government hiked the duty on iron ore exports by 50 percent. Export duty on certain types of steel has been increased to 15 percent. At the same time, customs duty on import of steel related raw materials and intermediates was cancelled. This prevented the price of steel from rising too much domestically.
At the same time, the Federation of Indian Steel Producers said that the tax has greatly affected India’s steel export opportunities in the foreign market, thereby affecting the domestic economy as well.
India has grown rapidly in recent years to become the second largest producer of steel after China. But India produces about 10 times less steel than China.