AAI seeks import duty hike, aims Rs 3 trillion aluminium investment
ECONOMY & POLICY

AAI seeks import duty hike, aims Rs 3 trillion aluminium investment

The Aluminium Association of India (AAI) recently urged the government to raise import duties and proposed a planned investment of Rs 3 trillion to drive growth in the aluminium sector. In its pre-budget recommendations to the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce, AAI emphasized aluminium’s vital role in India’s economic progress, particularly in critical areas like defence, aerospace, renewable energy, and electric vehicles.

AAI reported that India’s annual per capita aluminium consumption is 3 kg, significantly below the global average of 12 kg. To address the growing domestic demand, expected to reach 10 million tonnes per annum (MTPA) by 2030, AAI estimated an additional investment of Rs 3 trillion over the next six years. The industry has already invested over Rs 1.5 trillion to expand production capacity to 4.2 MTPA.

An AAI representative underscored aluminium’s importance in key sectors such as defence and sustainable infrastructure, advocating for self-sufficiency as essential to India’s development. AAI highlighted that rising primary aluminium imports, which have doubled in recent years, are deterring new investments despite India’s potential to become a global hub. As part of its recommendations, AAI suggested raising import duty on primary and downstream aluminium products from 7.5% to 10% and maintaining a 7.5% duty on aluminium scrap, noting that this measure could reduce cheap imports, promote domestic recycling, and strengthen the circular economy.

Additionally, AAI encouraged the government to adjust duties on essential raw materials, as the industry currently incurs about 17% of its production costs in taxes and regulatory fees. AAI also stated that current investments in the aluminium industry have generated over 8 lakh jobs, both direct and indirect, and supported more than 4,000 small and medium enterprises (SMEs) in rural areas. The proposed Rs 3 trillion investment is projected to create 20 lakh more jobs, aligning with the “Atmanirbhar Bharat” vision. With appropriate duty adjustments and import restrictions, AAI asserted, the aluminium sector could become a major contributor to India’s self-reliance journey.

The Aluminium Association of India (AAI) recently urged the government to raise import duties and proposed a planned investment of Rs 3 trillion to drive growth in the aluminium sector. In its pre-budget recommendations to the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce, AAI emphasized aluminium’s vital role in India’s economic progress, particularly in critical areas like defence, aerospace, renewable energy, and electric vehicles. AAI reported that India’s annual per capita aluminium consumption is 3 kg, significantly below the global average of 12 kg. To address the growing domestic demand, expected to reach 10 million tonnes per annum (MTPA) by 2030, AAI estimated an additional investment of Rs 3 trillion over the next six years. The industry has already invested over Rs 1.5 trillion to expand production capacity to 4.2 MTPA. An AAI representative underscored aluminium’s importance in key sectors such as defence and sustainable infrastructure, advocating for self-sufficiency as essential to India’s development. AAI highlighted that rising primary aluminium imports, which have doubled in recent years, are deterring new investments despite India’s potential to become a global hub. As part of its recommendations, AAI suggested raising import duty on primary and downstream aluminium products from 7.5% to 10% and maintaining a 7.5% duty on aluminium scrap, noting that this measure could reduce cheap imports, promote domestic recycling, and strengthen the circular economy. Additionally, AAI encouraged the government to adjust duties on essential raw materials, as the industry currently incurs about 17% of its production costs in taxes and regulatory fees. AAI also stated that current investments in the aluminium industry have generated over 8 lakh jobs, both direct and indirect, and supported more than 4,000 small and medium enterprises (SMEs) in rural areas. The proposed Rs 3 trillion investment is projected to create 20 lakh more jobs, aligning with the “Atmanirbhar Bharat” vision. With appropriate duty adjustments and import restrictions, AAI asserted, the aluminium sector could become a major contributor to India’s self-reliance journey.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement