India is the 4th largest producer of iron ore, producing around 74 million tonnes Annually, which is nearly 7.5% of the global output. The countries proven iron ore reserves stands at around 3 billion tonnes, 2% of the world total.

Currently, India accounts for about 9% of global iron ore exports. Due to India's locational advantage viz-a-viz China, India benefits from lower freight costs. Also, India's iron-ore is of very high grade. Studies and analyses suggest that India can have greater scope than at present to supply iron ore to China, only if the competitiveness of Indian exporters improves.