Industry body urges 15% duty on aluminium to curb rising cheap imports

The Aluminium Association of India has warned that unchecked imports could meet over half of India's aluminium demand by FY26, threatening domestic producers

The Aluminium Association of India (AAI) has urged the Department for Promotion of Industry and Internal Trade (DPIIT) and the Ministry of Finance to impose a 15 per cent basic customs duty on all aluminium products to counter rising low-quality imports that threaten domestic manufacturers.

 

The association has also called for global-standard scrap controls and circular economy reforms to safeguard the country’s aluminium sector ahead of the 2026–27 Union Budget.

 

AAI warns of dumping threat

 

In a letter to the two ministries, AAI warned that India is at risk of becoming a dumping ground for surplus global aluminium, as imports surge amid international tariff wars. The association said that unless urgent action is taken, aluminium imports could account for 54 per cent of India’s domestic demand by FY26.

   

The industry body has recommended the implementation of Bureau of Indian Standards (BIS)-aligned quality standards for imported aluminium scrap and the rationalisation of duties on raw materials to support domestic value addition. It also sought harmonisation of regulations to promote a circular economy and strengthen environmental safeguards.

 

Call for quality controls and trade parity

 

AAI noted that while global powers such as the US, China, and the EU have tightened trade measures—raising tariffs and imposing quality restrictions—India continues to allow low-grade and contaminated aluminium scrap, often containing hazardous materials such as lead.

 

Such imports, primarily from the US and EU, are used in consumer goods and electrical equipment, raising health and safety concerns, the association said.

 

Domestic industry under strain

 

Despite investments of Rs 1.5 lakh crore and a production capacity of 4.2 million tonnes per annum, the domestic aluminium industry is struggling to compete with cheaper imports.

 

If the proposed measures are implemented, AAI said, India could attract over Rs 2 lakh crore in new investments in the near term and up to Rs 20 lakh crore by 2047, expanding capacity to 9.2 million tonnes per annum (MTPA) and generating over one lakh jobs.