Govt Extends Interest Equalisation Scheme For MSME Exporters Until September 30
The Indian government has extended the Interest Equalisation Scheme on pre- and post-shipment rupee export credit by one month, now running until September 30, 2024. This extension, confirmed by the Directorate General of Foreign Trade, aims to support MSME manufacturing exporters amid global economic challenges. Originally launched in 2015, the scheme offers interest benefits on export credit, capped at Rs 10 crore per exporter per year. The government recently approved an additional Rs 2,500 crore to sustain the program. The extension highlights ongoing efforts to bolster India's export sector, particularly small and medium-sized enterprises.
Question: What is Import Export Code?
Iron ore prices struggle at multi-year lows in a 'challenging' global environment
The international iron ore prices have dropped to around $90 per tonne due to the oversupply caused by the struggling Chinese economy. This has led to a decrease in iron ore prices by more than 33% this year, with no signs of recovery as domestic consumption from China remains weak. Steelmakers in China are facing a multi-year slump in the construction business, leading to intense competition and oversupply in other major markets like India and the USA. The Indian government has acknowledged the concerns raised by the industry and has initiated an inquiry into the surge in steel imports, particularly from China and Vietnam. There are discussions about pushing for higher tariffs on Chinese steel imports, with some officials proposing an increase to over 12% from the current 7.5%. However, analysts believe that this duty hike may not be sufficient to counter the allure of cheaper imports from China.
Furthermore, Chinese steelmakers are attempting to transition their product portfolio away from construction to cater to the transportation sector and are focusing on producing green and low-carbon steel. They have been working on ultra-low emission transformations to meet environmental requirements. China remains the world's largest steel producer and consumer, accounting for about 54% of global steel production and 51% of the global output consumption in 2023. Despite the challenges, Indian steelmakers have raised concerns about rising Chinese imports affecting their margins. Both representatives from the JSW Group and JSPL have expressed the impact of rising Chinese imports on domestic steelmakers.
In conclusion, the iron ore and steel industries are grappling with challenges stemming from the struggling Chinese economy and oversupply issues, leading to discussions about imposing higher tariffs to protect domestic industries. Additionally, Chinese steelmakers are transitioning their product portfolio to meet the evolving demands of the global market.
Question: Which is the largest Iron ore producing state in India?
- Odisha
- Jharkhand
- Chhattishgarh
- Karnataka
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