According to Indian local press, the Indian government has rejected the proposal made by Karnataka local government for restricting the export of iron ore, mainly because it would cause serious unemployment, revenue decline and social intensions.

Anand Sharma, the Minister of Department of Commerce in India, has revealed the domestic iron ore consumption is only about 85-90 million tons per year, but the country’s annual total iron ore output reaches 230-235 million tons.

Although the spare 140 million iron ore storage would harm the environment, exporting is still significant for Indian revenue and employment, especially in the impoverished areas located at mining region.