AAI Urges Government to Ensure Aluminium Self-Reliance

04 Nov 2025 CW Team

In a detailed submission, AAI urged the Government to impose a uniform 15 per cent Basic Customs Duty (BCD) on all aluminium products and introduce strict quality controls on non-standard scrap imports. The association warned that without immediate intervention, India risks facing a supply crisis similar to that of critical minerals.

AAI highlighted a 50 per cent surge in aluminium imports over the past five years, driven by exports from surplus nations benefiting from global tariff and non-tariff protectionist measures. It emphasised that a flat import duty and stricter quality standards are essential to prevent India from becoming a dumping ground for poor-quality scrap, protect domestic manufacturers, and attract long-term investments.

Under the Government of India’s Aluminium Vision 2047, aluminium has been designated a strategic metal vital for defence, infrastructure, power, aerospace, transport, and national security. India’s current aluminium demand of 5.5 million tonnes is projected to reach 8.5 million tonnes by 2030 and 37 million tonnes by 2047. Achieving this growth would require investments exceeding Rs 200 trillion.

AAI cautioned that without policy safeguards, India may mirror China’s rare earth situation, where strategic materials turned into trade levers through export controls. It also noted the rising global trend of ‘scrap nationalism’, where developed nations retain high-quality scrap for domestic use while exporting low-grade scrap to countries like India — a trend that could erode India’s manufacturing base.

A strong domestic aluminium ecosystem, AAI stated, has already created over 800,000 direct and indirect jobs and supports more than 4,000 MSMEs. Around Rs 20 trillion in immediate investments is in the pipeline, with the potential to further boost employment and manufacturing capacities aligned with the Government’s ‘Viksit Bharat’ vision.

The submission to the Ministry of Mines follows earlier representations to the Ministry of Finance and the Department for Promotion of Industry and Internal Trade (DPIIT), forming part of a broader effort for inter-ministerial alignment on aluminium sector reforms.

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The Aluminium Association of India (AAI) has called for urgent policy action from the Ministry of Mines to strengthen India’s aluminium manufacturing base and secure self-reliance under the Aluminium Vision 2047.In a detailed submission, AAI urged the Government to impose a uniform 15 per cent Basic Customs Duty (BCD) on all aluminium products and introduce strict quality controls on non-standard scrap imports. The association warned that without immediate intervention, India risks facing a supply crisis similar to that of critical minerals.AAI highlighted a 50 per cent surge in aluminium imports over the past five years, driven by exports from surplus nations benefiting from global tariff and non-tariff protectionist measures. It emphasised that a flat import duty and stricter quality standards are essential to prevent India from becoming a dumping ground for poor-quality scrap, protect domestic manufacturers, and attract long-term investments.Under the Government of India’s Aluminium Vision 2047, aluminium has been designated a strategic metal vital for defence, infrastructure, power, aerospace, transport, and national security. India’s current aluminium demand of 5.5 million tonnes is projected to reach 8.5 million tonnes by 2030 and 37 million tonnes by 2047. Achieving this growth would require investments exceeding Rs 200 trillion.AAI cautioned that without policy safeguards, India may mirror China’s rare earth situation, where strategic materials turned into trade levers through export controls. It also noted the rising global trend of ‘scrap nationalism’, where developed nations retain high-quality scrap for domestic use while exporting low-grade scrap to countries like India — a trend that could erode India’s manufacturing base.A strong domestic aluminium ecosystem, AAI stated, has already created over 800,000 direct and indirect jobs and supports more than 4,000 MSMEs. Around Rs 20 trillion in immediate investments is in the pipeline, with the potential to further boost employment and manufacturing capacities aligned with the Government’s ‘Viksit Bharat’ vision.The submission to the Ministry of Mines follows earlier representations to the Ministry of Finance and the Department for Promotion of Industry and Internal Trade (DPIIT), forming part of a broader effort for inter-ministerial alignment on aluminium sector reforms.

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