Aluminium Association of India seeks stronger trade protection through import duties

New Delhi [India], December 2 : The government's decision to impose anti-dumping duties on anodized Aluminium frames for solar panels and modules from China has been welcomed by the Aluminium Association of India (AAI).
AAI says this will boost the domestic downstream aluminium industry by offering expanded market access and fostering a self-reliant aluminium sector in India.
The imposed anti-dumping duties, effective for five years, aim to curb the influx of low-cost imports and encourage local production.
The notification from the Ministry of Finance highlighted that dumping from China has significantly hindered the development of domestic manufacturing capacity.
Ahead of Budget 2025, the aluminium industry has appealed for stronger trade protections. Import duties on primary and downstream aluminium products to be raised from 7.5 per cent to 10 per cent. A uniform 7.5 per cent duty on aluminium scrap to reduce the inflow of low-quality scrap that undermines domestic producers.
These measures, according to industry leaders, are critical to counter a surge in aluminium imports, which now account for 54 per cent of India's total aluminium demand.
This dependency has led to a foreign exchange outflow of Rs56,291 crore annually, contributing 1 per cent of India's total import bill.
Scrap imports, which often lack quality standards, have doubled in the last decade, rising from 869 KT in FY15 to 1,825 KT in FY25.
A significant portion of these imports comes from China, the Middle East, the US, and the UK, where surplus low-quality scrap is being offloaded. In contrast, global markets like the US and China have implemented high tariffs and restrictions to protect their domestic aluminium industries.
Advanced economies view aluminium as a strategic resource, adopting measures to shield their industries. US, for instance, has imposed a 10 per cent tariff on aluminium imports, while China levies 25 per cent duties on aluminium scrap imports from the US, along with added restrictions.
Despite these trends, India has become the world's largest importer of aluminium scrap, a development that hampers the growth of its domestic industry.
Industry stakeholders believe the anti-dumping duties on solar panel components mark a significant step toward building a competitive and sustainable aluminium ecosystem.
A spokesperson for the Aluminium Association of India, said "We are optimistic of similar measures in the upcoming budget to empower domestic aluminium producers, which will enable them to support the global energy transition and also induce them to invest in added capacity to meet the growing demand."
With India's aluminium demand projected to reach 10 million tonnes by 2030, robust measures such as higher import duties and anti-dumping protections are crucial for the sector's long-term growth.