The Aluminium Association of India (AAI) has called for government intervention in the form of supportive measures to address challenges faced by the aluminium industry, including rising foreign imports, a declining market share and escalating costs. The AAI has specifically requested the removal or rationalization of taxes on key inputs for the sector, such as calcined petroleum coke, caustic soda and aluminium fluoride, which currently attract high duties of 7.5%. Additionally, the AAI has requested the elimination of goods and services tax (GST) compensation cess to support power-intensive industries such as aluminium, and the imposition of quality standards and higher duties on foreign scrap imports.
The Aluminium Association of India (AAI), representing aluminium-producing firms in India.
Why it matters
With demand for aluminium in India set to rise to 10 million tonnes per annum by 2030, the AAI estimates that an investment of nearly USD 5.6 billion will be required to scale up production capacities. The high cost of procuring raw materials and government taxes are currently hindering fresh investments in the industry, and the AAI believes that removing or rationalizing taxes on key inputs and eliminating GST compensation cess will boost cost competitiveness and attract new investments. Additionally, preventing the dumping of low-quality foreign scrap in India will help develop the domestic recycling landscape and ensure that safety and environmental standards are met.