Officials have stated,. The government might reduce the heavy duties from exports of Iron ore and steel intermediates as higher imposition on them have immensely effected the nations overall mercantile.
They quoted That the higher duties on these are not necessarily required as their supplies have exceeded the demands. To increase the availability for domestic traders and manufacturers,. The Finance Ministry has imposed export duties from 15% to 45% on inputs for iron and steel on May 22.
The demand for these particulars has drooped and their availability is unbothered in the domestic spectrum. Decisions with regard to reducing export duties is underway and the every detail has been collected to deeply analyzed.
“Calibration of customs duties is one of the instruments to ensure supplies of essential commodities, basic goods, raw materials, intermediaries, particularly MSMEs [micro, small and medium businesses], have access and inputs at fair prices”. This practice also helps to control inflationary pressures. According to input it receives from the ground,. That the government is constantly updating duties, one of the officials said.
Iron and Steel Prices
In view of increase in consumer price index based inflation, the Finance Ministry responded through a tweet stating,. “Prices of major inputs like iron ore and steel have sobered in the global markets”.
As per the Ministry there was “a moderate increase” to 7% in August from 6.71% in july this year which can be compared to a base effect and increase in food and fuel prices. CPI Inflation.
Another official said,. Gradual dip in India export growth like that of Iron ore and steel have been effected drastically due to high export duties over the years.
Government is planning to have a clear picture on how each items value has fallen and will also analyze as to how it has happened and take appropriate measures to tackle the situation.
The exports growth has dropped over the years for the last two months. A recent days that was published in August has indicated that India’s exports in July was 2.14% yearly growth at $36.27 billion,. Which was much lower than the last month when exports were over 23.5% year-on-year at $40.13 billion. The latest data states the growth further dipped to 1.62% in August at $33.92 billion.
Another latest data showed iron ore exports fell by “69.14%” at “$642.56 million” in April to July 2022 compared to “$2082.12 million” during the same time last year. Base exports of iron and steel also fell by around 21.33% at around “$6.1 billion” in the first five months of the same year in comparison to over $7.7 billion during the same period last year. Talking of imports of iron and steel have drastically rose to “37.8%” to “$4.84 billion“ in April to July 2022 in comparison to “$3.51 billion“ in April to July 2021.
When in comes to the commodity group the exports have faced a great downtrend and the imports have witnessed an immense growth of iron and steel,. Which the nation should be bothered about and had to take immediate actions to tackle the situation. The expert data showed that there’s import growth of 32% at $1.76 billion.
The exports in India are an important aspect for the economic growth,. The Finance ministry said,. “Indian economy becomes a global one as the share of exports in GDP increased by more than three times since independence, from 6.4% in 1950-51 to 21.5% in 2021-22”.
Geo-political situations have a direct impact on India’s trade,. And has proved to be the factors for gradual decline of exports. On the other hand the import trades continued to flourish in the country. Meanwhile,. commodity prices have increased India’s merchandise trade deficit to $27.9 billion in August 2022, the Ministry added.