India, Jan. 28 -- India's experience in 2022 of trying to shackle exports offers a clear warning. The imposition of a 50% export duty on low-grade iron ore and a 45% duty on pellets led to a collapse in exports, sharp production cuts, and the build-up of environmentally hazardous stocks. State revenues suffered significantly, with Odisha alone losing over Rs. 12,000 crore within six months. Recognising these consequences, the government rolled back the duties within months. Reintroducing export restrictions would merely repeat a policy experiment that has already been tested and debunked.

Exports of low-grade iron ore are far from marginal and represent a significant and stable source of foreign exchange for the nation. Ministry of comme...