To Support Its Steel Industry, China Increases Iron Ore Imports From India

The largest importer of iron ore, China’s inward shipment of the ore stood at 1.24 billion tonnes in 2024. Though China primarily imports its iron ore from Australia and Brazil, India is also becoming one of the key suppliers of this product.

At present, 90 per cent of India’s total iron ore exports are directed to China, up from 80 per cent five years ago. “This surge represents one of the highest volumes in recent years and underscores China’s dependence on Indian raw materials to fuel its steel industry,” Vijay K Mishra, Chairman, India China Trade Centre (ICTC) told The Secretariat.

Apart from iron ore, India’s exports to China include mineral fuels and mineral oils, among others.

Exporters Worried

While exports of iron ore have increased, domestic industry and associations have started increasing pressure on the government to levy export duties on low-grade iron ore, a move that they hope will protect the Indian users.

Trade experts said that India should refrain from making knee-jerk reactions, as they dampen sentiments for exports, which then take a hit.

“Our iron ore exports have been growing well. Considering the current geo-economic uncertainties, which are expected to hurt exporters, any decision on curbing exports of any goods could further impact this sector,” a promoter of a company dealing with the shipment of metal said.

India’s Iron Ore Production 

India has the fifth-highest iron ore reserves in the world. Trade between India and China reflects a deep economic interdependence, but also highlights the need for India to rebalance the relationship.

India’s imports from China in 2024 stood at almost US$ 113.45 billion, with a trade deficit of US$ 99.2 billion. Among other items, India is dependent on China for its critical minerals.

“While minerals continue to be a cornerstone of India’s exports to China, the broader trade strategy is now shifting toward resilience, diversification, and self-reliance in key sectors,” Mishra said. 

Despite political tension between the two countries, the two countries have allowed economic relations and trade to function independently. China’s foreign investment in India has been increasing as well, with total investments of about US$ 2.50 billion since April 2000.

BJP’s national spokesperson on economic affairs, Gopal Krishna Agarwal, told The Secretariat that the two countries have robust economic relations, which will continue. “We are dependent on China for supplies of several key raw materials, and our government will do everything it takes to support economic growth. It is key to keep the supply chains intact,” Agarwal said.