For FY26 budget, aluminium industry body AAI proposes hike in customs duty to curb imports

New Delhi, Nov 12 (PTI) Ahead of the Union Budget 2026-27, aluminium industry body AAI has asked the government to increase the basic customs duty on all aluminium products including scrap to 15 per cent to prevent the rise in low-quality imports and protect domestic players.

It said such a move will ensure quality of aluminium scrap in line with global peers like the EU and China and prevent India to become a dumping ground for the metal waste.

In a letter to mines secretary Piyush Goyal, Aluminium Association of India (AAI) said, "...to fulfil the vision of 'Atmanirbhar Bharat' in the aluminium sector, we need ...to increase basic customs duty on all aluminium products under Chapter 76 to flat 15 per cent." It also flagged that the domestic industry is suffering from unhindered imports despite sufficient domestic capacity available to meet the demand. With rising imports, India's trade deficit with regards to aluminium expected to hit an all-time high of USD 3.4 billion (Rs 30,000 crore) in FY26, it said.

The current duty on primary aluminium products is 7.5 per cent, while aluminium scrap faces 2.5 per cent levy and downstream aluminium items in the range of 7.5 per cent to 10 per cent.

In order to prevent India becoming a dumping ground for wastes, AAI has also asked the government to bring in strict quality standards on aluminium scrap in line with those implemented by the European Union (EU), Malaysia, and China.

This will develop domestic scrap market and promote circular economy, AAI said.

Aluminium is vital for defence, national security, infrastructure, aerospace, power, transportation, and overall economic growth. It is officially recognised as a critical, strategic metal by the USA, EU and UK among others.

In the letter, AAI further said that without adequate tariff protection, India faces the risk of becoming a dumping ground for surplus global aluminium, threatening domestic producers' investments which aim to achieve self-reliance.

India, the world's largest scrap importer, must adopt strict BIS (Bureau of Indian Standards) norms to ensure scrap quality for the secondary aluminium industry, aligning with standards for primary producers, it said. PTI SID HVA