Acute shortage of iron ore has forced India to import the key steel-making raw material which is going to adversely impact CAD, JSW Group Chairman Sajjan Jindal today said.
"Two years ago we were third largest iron ore exporter from India and unfortunately because of various reasons today there is a big shortage of iron ore and India is being forced to import iron ore which will have a very negative impact on our CAD," Jindal told reporters after calling upon Steel Minister Narendra Singh Tomar this evening.
He was of a CII delegation which met the Minister to press upon steel industry demands, including national policy for exploration of iron ore.
India's current account deficit (CAD) sharply narrowed to 1.7 per cent of GDP, or USD 32.4 billion, in FY'14 from 4.7 per cent in FY'13.
Worried over dwindling iron ore production, he said, "The only concern that everyone is talking about is lack of iron ore in our country. That's a major concern. Seventy-five per cent of the issues are around iron ore."
At the same time he expressed the hope that a stable government, led by Narendra Modi "who is a very pro- development Prime Minister", will usher in positive changes.
On JSW Steel capacity expansion, he said, "Everybody is stepping up their capex and so are we". However, he did not share the details.
Domestic iron ore production has been on the wane and has declined to about 129 million tonnes in 2013-14 from 213.25 million tonnes six years ago on account of various factors, including high export duty and mining ban for some period in certain states.
