Aluminium industry seeks higher import duty to curb dumping

The Aluminium Association of India (AAI) has urged the government to raise the import duty on aluminium products to 15% and tighten quality standards on scrap imports to prevent India from becoming a dumping ground for global aluminium. With major economies like the US, China, and Europe imposing steep trade barriers, India faces an influx of diverted aluminium supplies.

The Aluminium Association of India (AAI) has urged the government to raise the import duty on aluminium products from the current 7.5% to 15% and to enforce stricter quality standards on aluminium scrap imports. The association said these steps are necessary to prevent India from becoming a dumping ground for surplus global aluminium, particularly amid growing tariff and non-tariff barriers in major markets such as the US, China, and Europe.

In a letter dated October 27 addressed to the Ministry of Finance and the Department for Promotion of Industry and Internal Trade (DPIIT), AAI stressed the need to safeguard domestic producers and ensure fair market access. With other economies tightening import restrictions, India has become a preferred destination for diverted aluminium supplies, leaving local manufacturers at a disadvantage.

AAI highlighted that aluminium consumption in India has risen by 160% over the past 14 years, reflecting strong industrial growth. However, import growth has surged even faster—by nearly 90 percentage points more than consumption—posing a serious challenge to domestic producers. The association also raised concerns over the sharp increase in imports over the past five years, warning that the value of aluminium imports could rise by 72%, from ₹45,289 crore in FY22 to ₹78,036 crore in FY26.

If the trend continues, AAI cautioned that domestic investments in the aluminium sector could be at risk, as more than half of India’s total aluminium demand—estimated at 55% in FY26—would be met through imports. The association reiterated that without timely policy intervention, India’s aluminium industry could face significant competitive pressures, discouraging local capacity expansion and undermining the government’s vision of self-reliance in key industrial materials.