NEW DELHI, OCT 28
The Aluminium Association of India (AAI) has presented its pre-budget recommendations to the Department for Promotion of Industry and Internal Trade, urging measures to protect the domestic market from surging imports. The AAI emphasizes aluminium’s importance for India’s goal of becoming a developed nation by 2047, as higher aluminium consumption is typical in advanced economies.
Currently, India’s per capita aluminium consumption is around 3 kg, significantly below the global average of 12 kg. Despite an expected domestic demand growth to 10 MTPA by 2030, attracting investments remains challenging. The industry has already invested over Rs 1.5 lakh crore ($20 billion) to increase production capacity to 4.2 MTPA, but an additional Rs 3 lakh crore ($40 billion) is necessary to meet future demand and create jobs.
To foster investment, the AAI has requested the government to raise import duties on primary aluminium and downstream products from 7.5% to 10 per cent, and to set the duty on aluminium scrap at 7.5%. This would support recycling and reduce the influx of low-quality foreign scrap.
The AAI also seeks duty rationalization on raw materials to alleviate the industry’s 17 per cent tax burden. Current investments have already created over 8 lakh jobs and supported more than 4,000 SMEs. The proposed additional investment could further align with the Prime Minister’s vision for an “Atmanirbhar Bharat,” potentially generating 20 lakh more jobs and advancing self-reliance in aluminium production.
