India, the world's largest producer of sponge iron, manufactured approximately 50 million metric tons of sponge iron, primarily utilized by secondary steel producers as a raw material.

Indian sponge iron manufacturers have appealed to the government to impose tariffs on the export of low-grade iron ore to prevent shortages of the primary raw material in the world's second-largest producer of crude steel. India's iron ore exports reached 32.2 million metric tons during the first nine months of the current fiscal year starting in April 2023, valued at US$2.7 billion, up from 9.5 million metric tons a year earlier.

China, India's neighboring country, received more than 90% of India's total iron ore exports. The increase in India's iron ore exports has alarmed sponge iron producers, who have expressed concerns about rising prices and decreasing supplies of the key ingredient in sponge iron production.