Archive · 19 Jul 2026
Aluminium Industry Seeks Duty Cuts for Competitiveness
Downstream aluminium manufacturers in India are asking the government to lower the taxes on imported aluminium and aluminium scrap.
They say the current taxes make it hard for them to compete because their costs are going up.
Big aluminium producers, like Hindalco and Vedanta, might not agree because they are doing well with the current taxes.
The manufacturers also worry about new rules in Europe that could make it even harder to sell their products abroad.
They want the government to help them by lowering these taxes so they can make more money and grow their businesses.
Downstream aluminium manufacturers urge the government to cut customs duty on primary aluminium and scrap to ease cost pressures.
Current duty structure has squeezed margins of downstream MSMEs by up to 70% and increased input costs by 20-35% in recent months.
Primary producers like Hindalco and Vedanta may resist duty cuts as they benefit from the current import-parity pricing.
Finished aluminium products enter India at near-zero duty under free trade agreements, creating an inverted playing field.
Industry bodies highlight the potential impact of the EU's Carbon Border Adjustment Mechanism on Indian aluminium exports.
- Who
- Downstream aluminium manufacturers, primary producers like Hindalco Industries Ltd and Vedanta Aluminium Ltd
- What
- Request for reduction in customs duty on primary aluminium and scrap
- When
- July 19, 2026
- Where
- India
- Why
- To ease cost pressures and improve competitiveness of downstream industries
Downstream Manufacturers
Primary Producers
Duty Reduction
Downstream Manufacturers
Seek reduction in customs duty on primary aluminium and scrap to ease cost pressures and improve competitiveness.
Primary Producers
May resist duty cuts as they benefit from the current import-parity pricing environment.
- Current Import Duty on Primary Aluminium
- 8.25%
- Current Import Duty on Aluminium Scrap
- 2.75%
- India's Per Capita Aluminium Consumption
- 2.5 kg
- Global Average Aluminium Consumption
- 11 kg
- Margin Compression in Downstream MSMEs
- Up to 70% over recent years
- Recent Increase in Input Costs
- 20-35% in the last three months