The Aluminium Association of India (AAI) has called on the Department for Promotion of Industry and Internal Trade (DPIIT) and the Ministry of Finance to address the growing risk of aluminium shortages in the country and to safeguard domestic industry from global import pressures. The industry is warning that unchecked imports could undermine India’s self-reliance ambitions and block potential investments exceeding ₹20 lakh crore in the sector.
AAI is recommending a 15% basic customs duty on all aluminium products under Chapter 76 and the enforcement of strict quality standards aligned with international benchmarks. The association says these steps are essential to prevent India from becoming a dumping ground for low-quality aluminium, especially at a time when global tariffs and non-tariff barriers are reshaping trade flows.
Worldwide, aluminium is now treated as a critical and strategic metal due to its importance in national security, infrastructure, aerospace, and clean energy technologies. The US has raised aluminium import tariffs from 10% to 50%, China levies 25% duty on aluminium scrap imports from the US with strict quality limits, and the EU and UK have introduced measures such as the Carbon Border Adjustment Mechanism (CBAM), pushing import costs up by 7–60%.
In contrast, India’s domestic producers face increasing competition from low-grade imports. Despite a ₹1.5 lakh crore investment that created a production capacity of 4.2 MTPA—second only to China—and over 8 lakh jobs, imports are projected to meet 54% of domestic demand by FY26. Over the past 14 years, India’s aluminium consumption has grown 160%, while imports surged 250%, and scrap imports rose 285%, highlighting the growing pressure on domestic manufacturers.
The Aluminium Association of India (AAI) has outlined key measures to protect domestic producers and strengthen the country’s aluminium sector. The association recommends increasing the basic customs duty on all aluminium products under Chapter 76 to 15% to curb dumping from global markets. Additionally, AAI calls for the implementation of BIS-aligned quality standards for imported aluminium scrap to prevent the entry of low-grade or hazardous materials that could compromise product quality and safety.
AAI also emphasizes the need to rationalize duties on critical raw materials to support domestic value addition and manufacturing competitiveness. The association further urges the government to harmonize regulatory frameworks to promote circular economy practices and reinforce environmental safeguards, ensuring sustainable growth for India’s aluminium industry.
AAI warns that uncontrolled imports of contaminated aluminium scrap, often containing hazardous substances such as lead, pose risks to health, safety, and the environment while harming domestic producers following BIS-certified processes. Most of this scrap comes from countries with stricter recycling norms, including the US and EU.
If these measures are implemented, India could expand aluminium production to 9.2 MTPA by 2030, generate over 1 lakh new jobs, boost MSME growth, reduce import dependence, and attract investments of ₹2 lakh crore in the short term and ₹20 lakh crore by 2047. AAI has urged the government to prioritise these reforms ahead of the Union Budget 2026–27 to strengthen India’s aluminium sector and advance the Atmanirbhar Bharat vision.
