India’s downstream aluminium manufacturers have urged the government to remove the 8.25 per cent import duty on primary aluminium, arguing that the existing tariff structure increases production costs and weakens their competitiveness. The Aluminium Extrusion Manufacturers Association of India (ALEMA) has also called for a 10-year period of duty relief to help domestic manufacturers, particularly micro, small and medium enterprises (MSMEs), strengthen their operations and expand capacity.
The demand comes as the industry welcomes the Directorate General of Trade Remedies’ (DGTR) decision to initiate an anti-dumping investigation into imports of aluminium extrusion profiles, structures and related articles from Malaysia, Vietnam and Thailand. However, the association believes that addressing unfair import competition through trade remedies will not resolve the wider cost pressures facing domestic manufacturers.
Primary aluminium duty adds to downstream cost pressures
According to ALEMA, the 8.25 per cent import duty on primary aluminium remains a significant cost burden for downstream manufacturers. The association has argued that removing the duty would reduce raw material expenses and allow domestic extruders to offer more competitive prices to customers.
The impact extends beyond extrusion manufacturers to businesses involved in fabrication, fenestration, façade systems, solar structures and lighting applications. These industries rely on aluminium products and could benefit from lower input costs across the domestic supply chain.
Ankur Agarwal, Honorary Secretary of ALEMAI, said anti-dumping measures alone would not address the deeper structural challenges confronting Indian manufacturers. He pointed out that the import duty directly increases production costs for a large section of the downstream industry and requires urgent policy attention.
Agarwal also said that while India had made significant progress in expanding primary aluminium production capacity, greater attention should now be given to strengthening downstream manufacturing and retaining more value addition within the country.