AAI’s appeal
Highlighting the sector's impressive investment potential of over INR 20 lakh crore (USD 240 billion), the association is calling on the government to ensure fair access to the domestic market and to stop India from becoming a dumping ground for global aluminium, especially with the increasing geopolitical tariff and non-tariff barriers.
In its recommendations, AAI has suggested implementing a 15 per cent fundamental customs duty on all aluminium products under Chapter 76 and enforcing strong quality standards that align with international benchmarks to boost industry competitiveness and protect national interests.
The push behind the appeal
As of now, the association is making its case as global market imbalances grow with a significant spike in aluminium imports from countries with excess production capacity, which is putting Indian manufacturers at a disadvantage. Aluminium is recognised as a strategic and essential metal by the US, European Union (EU), NATO and India, playing a crucial role in various sectors like national security, infrastructure, aerospace and the shift towards clean energy.
Moreover, the US has ramped up tariffs on aluminium imports from 10 per cent to a whopping 50 per cent. On the other hand, China has slapped a 25 per cent duty on aluminium scrap coming from the US, along with some pretty strict quality rules that only allow for less than 91 per cent aluminium content. Concurrently, the EU and the UK have rolled out non-tariff measures like the Carbon Border Adjustment Mechanism (CBAM), which has effectively jacked up aluminium import costs by anywhere from 7 per cent to 60 per cent.
