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India's Aluminium Faces Import Threat
19 Jul
Summary
- India's aluminium imports doubled since FY15, raising forex outflow concerns.
- Association calls for higher duties on low-grade aluminium scrap imports.
- BIS quality standards proposed to prevent dumping of hazardous scrap.
The Aluminium Association of India is pressing the government to strengthen import safeguards by increasing duties on low-grade aluminium scrap and notifying Bureau of Indian Standards (BIS) quality standards. The association warns that unchecked imports and global dumping pose a significant threat to domestic producers and could escalate forex outflows.
Citing shrinking export markets and rising global protectionism, the association has requested the finance ministry's support. They specifically highlighted concerns about increasing imports of low-quality scrap from Gulf and ASEAN countries, alongside dumping from Russia and capacity expansion in Indonesia. The group emphasized the need for India to establish quality standards, similar to major economies, to avoid becoming a dumping ground for hazardous materials.
Data indicates that aluminium imports have more than doubled from 1.53 MTPA in FY15 to 3.48 MTPA in FY26, with import bills rising from ₹23,328 crore to ₹88,434 crore. Scrap imports alone surged from 840 KTPA to 2,028 KTPA in FY26, resulting in a forex outgo of ₹40,203 crore. The association advocates for enhanced import duty to 7.5% on low-grade aluminium scrap (Grades 3 to 7) to curb these imports.
