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India's iron ore imports are projected to reach a seven-year high by the fiscal year 2025-2026.
This surge is primarily driven by the increasing demand from domestic steel mills for high-grade iron ore.
Despite being a major iron ore producer, India largely exports low-grade ore, which is unsuitable for its own steel production.
The country aims to significantly boost its steel production capacity to 300 million tonnes by 2030.
Aims to increase domestic steel production capacity, directly impacting raw material demand.
Promotes domestic manufacturing, but reliance on raw material imports poses a challenge.
Increased imports of raw materials can worsen the merchandise trade deficit.
Policies related to iron ore extraction, beneficiation, and domestic availability of high-grade ore.
India also heavily imports coking coal, another crucial raw material for steel production, adding to import dependence.
Iron ore is classified into different grades based on its iron content and mineral composition. High-grade ores (like hematite with high iron content) are preferred for steelmaking in blast furnaces due to their efficiency. Low-grade ores require 'beneficiation,' a process of improving the ore's quality by removing impurities and increasing the iron concentration, making them suitable for industrial use. India produces abundant low-grade iron ore but often needs to import high-grade ore for its advanced steel mills.
Simple Analogy: Think of it like different qualities of flour. You might produce a lot of basic flour (low-grade ore), but for a specific recipe (steelmaking), you need a special, high-quality flour (high-grade ore) that you might have to buy from elsewhere, even if you have plenty of your own basic flour.
GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Infrastructure: Energy, Ports, Roads, Airports, Railways etc. Investment models.
General Awareness: Indian Economy, Industries.
General/Economic Awareness: Economic news, industrial trends, trade data.
General Awareness: Indian Economy, Industries, Geography of India (resources).
With reference to the international trade of India at present, which of the following statements is/are correct? 1. India's merchandise exports are less than its merchandise imports. 2. India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3. India's exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below:
Answer: 1, 3 and 4 only
In India, the steel production industry requires the import of
Answer: coking coal
Which of the following are associated with 'Planning' in India? 1. The Finance Commission 2. The National Development Council 3. The Union Ministry of Rural Development 4. The Union Ministry of Urban Development 5. The Parliament Select the correct answer using the code given below.
Answer: 2 and 5 only
Medium-High
A mineral from which metallic iron is extracted.
The process of manufacturing steel, a crucial alloy for infrastructure and industry.
The process of improving the quality of an ore by removing unwanted materials.
Government policy aiming to enhance India's steel production capacity and self-reliance.
When a country's imports exceed its exports.