Mineral Policy Issues in the Context of Export and Domestic Use of Iron Ore in India

Author: 
A. S. Firoz
Description: 
Indian Council For Research On International Economic Relations Working Paper No. 207
JEL codes: 
Abstract: 
This study examines the utilization of iron ore in India. It takes into account the significant reserves of iron ore in India and allays fears that the country's steel industry will run out of iron ore resources if exports continue at the current level. On the contrary, it says that exports are necessary to maintain a structural balance in the market between production and consumption of lumps and fines as nearly 80% of exported ores are fines which are not adequately used in India. This study also highlights the specific problems of the Goa/Radi region. It examines the bilateral agreements with countries like Japan and Korea as well. The study says that the size of mineral resources is a dynamic concept and depends on exploratory efforts, which have not been enough in India due to lack of investments. It recommends on the basis of international experience that increased investment in the mineral sector, especially in exploration, will lead to new reserves and resources.