Aluminium industry body AAI seeks protection from cheap metal imports

New Delhi, Oct 28 (PTI) Aluminium industry body AAI has requested the government to safeguard local players from cheap metal imports, which are threatening the competitiveness of Indian producers.

The industry body has urged the Department for Promotion of Industry and Internal Trade (DPIIT) and the Ministry of Finance to provide domestic market access by preventing India from becoming a dumping ground for global aluminium, amid escalating geopolitical tariff and non-tariff barriers.

The appeal of the Aluminium Association of India (AAI) comes at a time when global market distortions and import surges from surplus-capacity countries are threatening the competitiveness of Indian producers.

Aluminium, now recognised as a strategic and critical metal by the United States, European Union, NATO, and India, plays a key role in national security, infrastructure, aerospace, and the energy transition.

The United States has raised tariffs on aluminium imports from 10 to 50 per cent, while China has imposed a 25 per cent duty on aluminium scrap imports from the US, along with stringent quality restrictions. Meanwhile, the European Union and the United Kingdom have introduced non-tariff measures, such as the Carbon Border Adjustment Mechanism, effectively increasing aluminium import costs by 7-60 per cent.

However, in India, despite a Rs 1.5 lakh crore investment in building a 4.2 MTPA production capacity second only to China, and creating over eight lakh jobs, low-quality imports of aluminium are on the rise and may comprise 54 per cent of domestic demand in FY26, AAI said in a statement.

Over the past 14 years, aluminium consumption in India has grown by 160 per cent, but imports have surged by 250 per cent, while aluminium scrap imports have risen by 285 per cent. This imbalance underscores the mounting pressure on domestic manufacturers amid distorted global trade conditions and will be a major dent to India's Aatmanirbhar Bharat vision. PTI SID MR