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

04 Nov 2024 CW Team

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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..