The Aluminium Association of India (AAI) has welcomed the Indian government’s decision to impose anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China. This move is expected to provide much-needed relief to the domestic aluminium industry by ensuring greater access to the local market, especially for downstream aluminium manufacturers.
As the country heads towards Budget 2025, the industry has been advocating for stronger import protections to support the development of a self-sufficient aluminium sector. These measures are expected to drive new investments, foster job creation, promote the growth of MSMEs, and help integrate remote areas into the broader economy.
The Indian aluminium sector has been struggling with a surge in imports, both primary and downstream, including foreign scrap. Industry stakeholders have repeatedly urged the government to increase import duties on these products from 7.5% to 10% and to impose a uniform 7.5% duty on low-quality aluminium scrap to curb excessive imports. The Ministry of Finance’s decision to impose anti-dumping duties acknowledges the negative impact of cheap imports, noting that they have hindered the development of domestic industry. The new duties will remain in effect for five years, providing much-needed protection.
Aluminium imports currently account for 54% of India’s total demand, representing an annual forex outflow of INR 56,291 crores, or 1% of the country’s total import bill. Much of these imports come from China, the Middle East, and increasingly the US and UK in the form of scrap. As imports of low-quality scrap have surged over recent years, the domestic industry has faced significant challenges. The AAI believes that similar protections for primary aluminium and scrap imports are essential to safeguard India’s aluminium industry, which is expected to grow in tandem with demand, projected to reach 10 million tonnes by 2030.
Globally, countries like the US and China have already implemented tariffs and import restrictions to protect their domestic aluminium industries. In contrast, India has become the largest importer of aluminium scrap, which is limiting the growth of its own industry. The imposition of anti-dumping duties is seen as a positive step in the right direction, and the AAI hopes that similar measures will be introduced in the upcoming budget to further empower domestic producers and support India’s role in the global energy transition. These actions are expected to boost the value-added downstream aluminium sector and encourage investments in new capacity, supporting the vision of a “Viksit Bharat” (developed India).
