Aluminium extrusion industry body seeks review of import duties, FTAs to offset US tariff impact

New Delhi, Sep 4 (PTI) Aluminium extrusion manufacturers' body ALEMAI on Thursday said the government needs to look at import duties, free trade pacts, and policies that promote domestic consumption so as to mitigate impacts of US tariffs.

According to ALEMAI (Aluminium Extrusion Manufacturers Association of India) President Jitendra Chopra, India's aluminium extrusion industry has an installed capacity of three million tonnes per annum, but utilisation remains at just 1.2 million tonnes.

Imports account for more than 1.5 million tonnes, largely due to price differences, Free Trade Agreement (FTA) concessions, and duty-free access to value-added products under multiple HSN (Harmonized System of Nomenclature) codes.

If the government restricts these imports, the domestic industry can increase production. That production will be consumed locally, creating value-added products, Chopra told reporters during the curtain raiser ceremony of ALUMEX India 2025 -- the country's first dedicated aluminium extrusion exhibition.

"So the government needs to look closely at import duties, FTAs, and policies that promote higher domestic consumption," he said, adding that "When our local industry produces and consumes more, costs will reduce, production will rise, we will become more competitive globally, and this will offset the tariff impact." Aluminium extrusions have diverse applications including construction electronics, aerospace and renewable energy due to their lightweight, strength, and corrosion resistant quality.

He said around 20-25 players export to the US and other global markets, so they are affected -- though less severely than the raw metal producers.

When asked how can this impact be mitigated, he said in India, aluminium consumption per capita is just 3-4 kg. The world average is 11-13 kg. In China, it's 25-30 kg. In the US, it's 17-18 kg.

"If we start consuming more domestically, the industry will grow faster. That will automatically mitigate the effect of the US tariff," he explained.

The US has raised the tariffs on steel and aluminium imports from 25 per cent to 50 per cent.

Aluminium extrusion facilities across the country are under-utilised due to import pressures, volatile raw material prices, and production delays. Despite these challenges, the sector is expected to experience significant growth, driven by infrastructure development, the automotive industry, and the expansion of renewable energy.

The Aluminium Extrusion Manufacturers Association of India represents more than 250 members nationwide, ranging from MSMEs to major enterprises. PTI SID HVA