BMI stated that the growth of India's iron ore production will be limited by its export tax policy on low-grade iron ore blocks and fines.

Last year in 2022, in order to meet domestic demand, India raised the export tax rate to 50% and the export tax rate for pellets to 45%. Despite a reversal in the second half of the year, the price increase has led to a significant decrease in India's iron ore exports due to slow global economic growth.

Basic Materials Institute (BMI) also pointed out that due to the decrease in demand caused by taxes, India's largest iron ore producer, the National Mining Development Corporation (NMDC), saw its production drop to a two-year low of 2.05 million tons in August last year.

As of the beginning of this fiscal year, NMDC's iron ore production has significantly improved. In April, the company's production reached 3.51 million tons, an increase of 11.4% year-on-year.

In the coming years, India's iron ore production is expected to increase, exceeding 40 million tons in fiscal years 2022 and 2023.

However, if India levies export taxes again in the short term, its production will definitely be affected.