Protecting Domestic Aluminium Producers: A Strategic Move

In a recent webinar titled "Advancing Aluminium for Atmanirbhar Bharat: Key Imperatives," a panel of experts, including senior civil servants, industry specialists, and media professionals, emphasized the urgent need for policy interventions to protect India's aluminium sector. The panel proposed increasing import tariffs on primary and downstream aluminium products to 10% and implementing a 7.5% duty on aluminium scrap. This move aims to counteract the rising imports that currently make up 56% of local consumption and prevent India from becoming a dumping ground for substandard aluminium.

Economic Self-Reliance and Net Zero Ambitions at Stake

Dr. Jayadev Sarangi, IAS (retd), highlighted the critical juncture at which India's aluminium sector stands. With imports and scrap projected to rise to 66% by FY2025, the sector's reliance on foreign sources poses a significant threat to India's economic self-reliance and its Net Zero ambitions. Strategic reforms, including higher duties, are essential to protect domestic manufacturers from unfair competition and sustain global competitiveness.

The Backbone of Critical Industries

Binod K Singh, IRS, formerly Additional Commissioner, pointed out the aluminium sector's pivotal role in supporting critical industries such as infrastructure, renewable energy, defence, and electric vehicles. The sector not only contributes to production but also supports over 8 lakh jobs and 4,000 SMEs in downstream industries. The influx of low-quality and carbon-intensive aluminium threatens domestic growth, investments, and key national projects like Bharatmala and the 500 GW renewable energy target for 2030.

National Security and Economic Growth

Deba R Mohanty, Vice President at Society for the Study of Peace and Conflict, underscored the importance of aluminium for national security and economic growth. Boosting domestic production is crucial for meeting the projected demand of 9–10 MTPA by 2030 and fostering defence self-reliance. Higher duties on scrap imports can secure India's industrial future and support the transition to a circular economy.

The participants unanimously urged the government to implement these strategic policy adjustments to address unfair trade practices, enhance domestic production, and align the aluminium sector with the objectives of Atmanirbhar Bharat.