+
AAI urges govt to raise import duties
ECONOMY & POLICY

AAI urges govt to raise import duties

The Aluminium Association of India (AAI) has urged for increased import duties and a strategic investment of Rs3 trillion to drive growth in the aluminium sector, as outlined in its pre-budget recommendations submitted to the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce. The AAI emphasised aluminium’s critical role in India’s economic development, given its extensive applications across sectors such as defence, aerospace, renewable energy, and electric vehicles.

The AAI noted that India’s per capita aluminium consumption remains low at 3 kg per year, compared to the global average of 12 kg. To meet projected domestic demand, which is expected to reach 10 million tonnes per annum (MTPA) by 2030, an additional investment of about $40 billion is estimated over the next six years. The industry has already committed over $20 billion to enhance production capacity to 4.2 MTPA.

An AAI representative stated that aluminium’s role in vital sectors like defence and sustainable infrastructure makes self-sufficiency essential for India’s development. The association highlighted that rising primary aluminium imports, which have doubled in recent years, are hampering fresh investments despite India’s potential to become a global production hub.

The AAI recommended raising the import duty on primary and downstream aluminium products to 10% from the current 7.5%, and setting the duty on aluminium scrap at 7.5%. This adjustment, the association argued, would curb inexpensive imports, promote domestic recycling, and strengthen the circular economy.

To enhance competitiveness, the AAI also called for rationalising duties on essential raw materials, citing that the industry currently faces taxes and regulatory charges accounting for around 17% of production costs.

The AAI reported that existing investments in the sector have generated over 800,000 direct and indirect jobs and supported more than 4,000 SMEs in remote areas. The proposed Rs3 trillion investment is expected to create an additional 2 million jobs, aligning with the government’s “Atmanirbhar Bharat” vision. The association asserted that with appropriate duty adjustments and import controls, the aluminium sector could significantly advance India’s self-reliance goals.

The Aluminium Association of India (AAI) has urged for increased import duties and a strategic investment of Rs3 trillion to drive growth in the aluminium sector, as outlined in its pre-budget recommendations submitted to the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce. The AAI emphasised aluminium’s critical role in India’s economic development, given its extensive applications across sectors such as defence, aerospace, renewable energy, and electric vehicles. The AAI noted that India’s per capita aluminium consumption remains low at 3 kg per year, compared to the global average of 12 kg. To meet projected domestic demand, which is expected to reach 10 million tonnes per annum (MTPA) by 2030, an additional investment of about $40 billion is estimated over the next six years. The industry has already committed over $20 billion to enhance production capacity to 4.2 MTPA. An AAI representative stated that aluminium’s role in vital sectors like defence and sustainable infrastructure makes self-sufficiency essential for India’s development. The association highlighted that rising primary aluminium imports, which have doubled in recent years, are hampering fresh investments despite India’s potential to become a global production hub. The AAI recommended raising the import duty on primary and downstream aluminium products to 10% from the current 7.5%, and setting the duty on aluminium scrap at 7.5%. This adjustment, the association argued, would curb inexpensive imports, promote domestic recycling, and strengthen the circular economy. To enhance competitiveness, the AAI also called for rationalising duties on essential raw materials, citing that the industry currently faces taxes and regulatory charges accounting for around 17% of production costs. The AAI reported that existing investments in the sector have generated over 800,000 direct and indirect jobs and supported more than 4,000 SMEs in remote areas. The proposed Rs3 trillion investment is expected to create an additional 2 million jobs, aligning with the government’s “Atmanirbhar Bharat” vision. The association asserted that with appropriate duty adjustments and import controls, the aluminium sector could significantly advance India’s self-reliance goals.

Related Stories

Gold Stories

Next Story
Real Estate

The Energy-Smart Buildings

Passive design is an integral part of energy-efficient architecture. Sophisticated building systems also contribute to this end. But what role do materials play in enhancing a building’s energy-efficiency?“Material selection is one of the earliest opportunities to influence how a building performs,” says Tejbeer Singh, Principal Architect & Founder, Expressionist by Tejbeer Singh. “The objective is not simply to select materials that look appropriate but to understand how they behave within the climate and construction system.”To read the full article Click Here ..

Next Story
Infrastructure Transport

When the Lowest Bid Comes at a Cost

India's infrastructure sector is building at a scale few markets can match. New highways, expressways, metros, bridges and complex engineering projects are transforming the country's landscape. Yet, behind this rapid expansion is a growing concern within the contracting community: Can infrastructure be delivered sustainably when competition pushes prices below commercially viable levels?For Praveen Sethia, Founder & Director, Infra Advisors, who moderated the discussion, the question goes beyond the contractor's commercial interests. Contractors may be one of the two parties to a contract,..

Next Story
Real Estate

Ultra-Luxury Projects Reshape Gurugram’s Housing Market

Gurugram’s luxury housing market has expanded beyond its traditional prime locations, with corridors such as Dwarka Expressway and Golf Course Extension Road emerging as key centres for premium residential development. Larger homes, integrated developments and amenity-led communities are attracting demand from end-users and investors.A 2025 report by Sotheby’s International Realty in collaboration with CRE Matrix identified Gurugram as India’s fastest-growing ultra-luxury housing market. The city overtook Mumbai in total sales value for homes priced above Rs 10 crore, recording nearly Rs..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code