ALEMA seeks govt to remove 8.25% duty on aluminium imports

The Aluminium Extrusion Manufacturers Association of India (ALEMA) has called on the government to lift the 8.25 per cent import duty on aluminium imports. The downstream aluminium manufacturers welcomed the Directorate General of Trade Remedies' decision to start an anti-dumping investigation into "Aluminium Extrusion Profiles, Structures and Articles thereof" from Malaysia, Vietnam and Thailand.

However, the industry stressed that while the investigation is a crucial step to tackle unfair import competition, it alone won't solve the core cost disadvantage faced by Indian manufacturers in the domestic market. The 8.25 per cent duty on primary aluminium remains a major structural cost burden for many downstream industry players.

The association urged the government to rationalise the duty and offer duty relief for ten years, enabling domestic manufacturers, especially MSMEs, to boost competitiveness, expand capacities and play a bigger role in the value-added aluminium manufacturing ecosystem. According to ALEMAI's Honorary Secretary, Ankur Agarwal, anti-dumping measures alone cannot tackle the deeper structural issues confronting Indian manufacturers.

The 8.25 per cent duty directly hikes production costs for a large chunk of the industry and remains a key concern needing immediate policy focus. While India has made considerable progress in boosting primary aluminium production capacity, the emphasis should now shift to fortifying downstream manufacturing and retaining more value addition within the country.

Rationalising the import duty on primary aluminium will help domestic manufacturers compete on equal terms, spur investment, safeguard MSME-led manufacturing and pave the way for a globally competitive aluminium value chain.