FIMI Seeks 15% Customs Duty to Protect Aluminium Sector
ECONOMY & POLICY

FIMI Seeks 15% Customs Duty to Protect Aluminium Sector

The Federation of Indian Mineral Industries has recently urged the Ministry of Finance to raise the basic customs duty on primary aluminium and downstream products to 15 per cent, citing a sharp rise in imports and growing risks to domestic manufacturing. The appeal forms part of FIMI’s recommendations for the Union Budget 2026–27, and highlights the increasing diversion of low-quality aluminium scrap into India due to the absence of quality and BIS standards.

FIMI noted that more than Rs 1.5 trillion has already been invested in expanding India’s aluminium production base, with a further Rs 1.6 trillion planned to increase primary capacity to 7.2 MTPA by FY30 and around 9 MTPA by FY33. These investments, aligned with the Aluminium Vision Document, are expected to generate over eight lakh jobs and reinforce the country’s industrial and supply chain resilience.

Despite sufficient domestic capacity, nearly 55 per cent of India’s aluminium demand in FY26 is projected to be met through imports, particularly from China, Russia, ASEAN nations and the Middle East. FIMI also flagged the rising inflow of low-grade aluminium scrap from the USA, EU, UAE and UK, warning that India has effectively become the world’s largest scrap importer.

To address cost pressures, the federation has sought lower duties on critical raw materials and corrective action on the inverted duty structure. High input costs, multiple taxes and cesses, elevated electricity tariffs and logistics expenses continue to make India one of the costliest aluminium producers globally, with taxes alone accounting for about 17 per cent of production costs.

FIMI has urged the government to adopt its recommendations to revitalise mining, promote exports, stimulate investment and support national manufacturing goals under Make in India and Atmanirbhar Bharat.

The Federation of Indian Mineral Industries has recently urged the Ministry of Finance to raise the basic customs duty on primary aluminium and downstream products to 15 per cent, citing a sharp rise in imports and growing risks to domestic manufacturing. The appeal forms part of FIMI’s recommendations for the Union Budget 2026–27, and highlights the increasing diversion of low-quality aluminium scrap into India due to the absence of quality and BIS standards. FIMI noted that more than Rs 1.5 trillion has already been invested in expanding India’s aluminium production base, with a further Rs 1.6 trillion planned to increase primary capacity to 7.2 MTPA by FY30 and around 9 MTPA by FY33. These investments, aligned with the Aluminium Vision Document, are expected to generate over eight lakh jobs and reinforce the country’s industrial and supply chain resilience. Despite sufficient domestic capacity, nearly 55 per cent of India’s aluminium demand in FY26 is projected to be met through imports, particularly from China, Russia, ASEAN nations and the Middle East. FIMI also flagged the rising inflow of low-grade aluminium scrap from the USA, EU, UAE and UK, warning that India has effectively become the world’s largest scrap importer. To address cost pressures, the federation has sought lower duties on critical raw materials and corrective action on the inverted duty structure. High input costs, multiple taxes and cesses, elevated electricity tariffs and logistics expenses continue to make India one of the costliest aluminium producers globally, with taxes alone accounting for about 17 per cent of production costs. FIMI has urged the government to adopt its recommendations to revitalise mining, promote exports, stimulate investment and support national manufacturing goals under Make in India and Atmanirbhar Bharat.

Next Story
Infrastructure Urban

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Next Story
Infrastructure Urban

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Next Story
Infrastructure Transport

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement