Aluminium body seeks 15% import duty, tougher scrap norms

New Delhi: The Aluminium Association of India (AAI) has sought an increase in import duty on aluminium products to 15% and for the implementation of stringent quality standards on scrap imports to curb dumping of the metal in the country.

In a letter dated October 27 to the ministry of finance and Department for Promotion of Industry and Internal Trade (DPIIT), AAI has "urged the government to provide domestic market access by preventing India from becoming a dumping ground for global aluminium, amid escalating geopolitical tariff and non-tariff barriers".

With countries such as the US, China and Europe erecting steep tariffs and non-tariff barriers on aluminium imports, AAI points out that India has become vulnerable to aluminium getting diverted from other markets, as the country currently imposes a 7.5% import duty on the metal.

AAI also said that while aluminium consumption in India increased by 160% over the last 14 years, imports have outpaced the consumption growth by 90 percentage points in the same period.

The association has also expressed concern about rising imports in the last five years, with aluminium imports forecasted to increase by 72% to ₹78,036 crore in FY26 from ₹45,289 crore in FY22.

Further, if imports continue at the same pace, investment plans of domestic aluminium players may be jeopardised, with 55% of India's total aluminium demand in FY26 expected to be met through imports.