The Material Recycling Association of India (MRAI) urged the Prime Minister’s Office to remove the 2.5% basic customs duty on aluminum scrap. MRAI President Sanjay Mehta said that scrap should be treated as a strategic industrial raw material. Unlike copper, zinc, and lead, aluminum scrap remains subject to tariffs, placing domestic recyclers at a disadvantage against duty-free Asian competitors.
India imports 80% to 85% of its domestic aluminum scrap needs. Secondary aluminum production reached nearly 2.2 million tons in FY26, supplying 35% of domestic consumption.
Lowering tariffs reduces raw material costs for thousands of micro, small, and medium-sized enterprises (MSMEs) and protects 700,000 sector jobs, where women represent 46% of the skilled workforce. Tariff elimination aims to enhance global competitiveness and expand the circular economy.