New Delhi, Nov 3 (NationPress) The Aluminium Association of India (AAI) has made a compelling appeal to the Ministry of Mines for a uniform 15% basic customs duty on aluminium products. This request comes as the industry grapples with significant challenges posed by the influx of imports from surplus nations, influenced by global protective measures, both tariff and non-tariff.

In its detailed submission, AAI pointed out that the country has witnessed a staggering over 50% increase in aluminium imports over the past five years. To shield the industry from these rising imports and to foster investment, the AAI is advocating for a consistent import duty of 15% on all aluminium products in pertinent categories, alongside the implementation of strict quality standards for subpar scrap imports.

The representation emphasizes the necessity for “urgent measures to safeguard the future of India’s aluminium sector, enabling investments to the tune of Rs 20 lakh crore.”

According to the AAI, these initiatives are vital for protecting domestic manufacturing, preventing India from turning into a dumping ground for inferior scrap, attracting long-term investments, and ensuring that the country’s aluminium industry becomes self-sufficient without reliance on imports.

The Government of India’s Vision 2047 for the sector recognizes aluminium as a strategic metal essential for India’s industrial evolution, impacting defence, infrastructure, national security, power, aerospace, transportation, and overall economic advancement.

Currently, India's aluminium demand is at 5.5 million tonnes and is expected to rise to 8.5 million tonnes by 2030. The 'Aluminium Vision Document' forecasts a near six-fold increase in demand to 37 million tonnes by 2047, necessitating investments surpassing Rs 20 lakh crore to develop a self-sufficient ecosystem.

However, without prompt action, India risks a scenario similar to that of rare earth materials in China, where strategic commodities became leverage through export constraints. This issue is worsened by global movements towards 'scrap nationalism,' where developed nations like the US and Europe hold onto high-quality scrap for their domestic markets while exporting lower-grade materials to countries like India, as per AAI’s statement.

This protectionist trend threatens to undermine India's manufacturing sector, limit future investments, and disrupt the Atmanirbhar Bharat vision. As global economies recognize aluminium as a strategic metal and bolster their domestic industries with tariff and non-tariff barriers, similar strategies in India could prevent aluminium shortages that might hinder GDP and infrastructure development, AAI has added.

The association reiterated that a successful domestic aluminium industry has already created over 800,000 direct and indirect jobs and supports more than 4,000 MSMEs. Immediate investments worth around Rs 2 lakh crore are on the horizon, expected to boost employment and facilitate the emergence of new MSMEs, thereby significantly advancing the Government’s 'Viksit Bharat' vision by building resilient supply chains.

This appeal to the Ministry of Mines follows a prior representation to the Ministry of Finance and DPIIT (Ministry of Commerce), as part of a coordinated industry effort to advocate for aligned reforms in the aluminium sector.