The Aluminium Association of India (AAI) has submitted a pre-budget appeal to the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce, emphasizing aluminium’s essential role in India’s growth as the country strives to become a developed nation by 2047. Despite the high demand for aluminium, the industry faces challenges in attracting new investments, especially as domestic consumption is projected to reach 10 million tons per year (MTPA) by 2030. The sector has already invested over INR 1.5 lakh crore ($20 billion) to expand production, but an additional INR 3 lakh crore ($40 billion) is required to meet this growing demand and create jobs.
Aluminium is a critical material for industries such as defence, aerospace, renewable energy, electric vehicles, and infrastructure. To promote self-sufficiency in aluminium production, the AAI has called on the government to protect the domestic industry from rising imports. Over the past few years, primary aluminium imports have doubled, with a marked increase in low-quality scrap and downstream products, particularly from China. The AAI attributes this surge to low import duties on aluminium products and the duty disparity between primary goods and scrap.
To ensure a more competitive and self-reliant industry, the AAI has requested the government increase import duties on primary and downstream products from 7.5% to 10%, and apply the same 7.5% duty on its scrap. These measures would support domestic recycling efforts and help reduce the influx of substandard imports. Furthermore, the AAI urges the rationalization of taxes on critical raw materials to ease the industry’s financial burdens, as it currently spends about 17% of its production costs on taxes, levies, and regulatory compliance.
The aluminium industry’s investments have already created over 8 lakh jobs and supported the development of 4,000 SMEs, especially in the downstream sector. The proposed additional investment could generate 20 lakh more jobs and align with the government’s “Atmanirbhar Bharat” initiative, contributing to the nation’s self-reliance and economic growth. With government support, the domestic sector is confident it can play a leading role in India’s journey towards sustainability and global competitiveness.
