India's imposition of higher export taxes on iron ore and various intermediate products such as pellets will raise costs for steelmakers, Vice President and Senior Analyst at Moody's Investors Service based in Singapore, was quoted by Reuters as saying.

Meanwhile, the imposition will result in huge surpluses at home, although this will divert part of such exports to the domestic market.

The government on May 21 raised exports tariffs on new iron ores and concentrates from 30% to 50% and duties on pellets from zero to 45%, effective from May 22. The government also removed import tariffs on coking coal and coke.

India produced a record 120 million tonnes of crude steel in the previous fiscal ended in March.

"The latest policy will dampen fresh investments," Dilip Oommen, chief executive officer of ArcelorMittal Nippon Steel India Ltd and president of the Indian Steel Association, said.

(Writing by Alex Guo  Editing by Tammy Yang)
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