ALEMA seeks removal of 8.25% aluminium import duty, calls for 10-year relief

India's downstream aluminium manufacturers have urged the government to remove the 8.25 per cent import duty on primary aluminium, arguing that the existing tariff structure increases production costs and weakens their competitiveness. The Aluminium Extrusion Manufacturers Association of India (ALEMA) has also called for a 10-year period of duty relief to help domestic manufacturers, particularly micro, small and medium enterprises (MSMEs), strengthen their operations and expand capacity.

The demand comes as the industry welcomes the Directorate General of Trade Remedies' (DGTR) decision to initiate an anti-dumping investigation into imports of aluminium extrusion profiles, structures and related articles from Malaysia, Vietnam and Thailand. However, the association believes that addressing unfair import competition through trade remedies will not resolve the wider cost pressures facing domestic manufacturers.

Explore the production, demand and consumption forecasts of bauxite and alumina in our report: "Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook"

Primary aluminium duty adds to downstream cost pressures

According to ALEMA, the 8.25 per cent import duty on primary aluminium remains a significant cost burden for downstream manufacturers. The association has argued that removing the duty would reduce raw material expenses and allow domestic extruders to offer more competitive prices to customers.

The impact extends beyond extrusion manufacturers to businesses involved in fabrication, fenestration, façade systems, solar structures and lighting applications. These industries rely on aluminium products and could benefit from lower input costs across the domestic supply chain.

Ankur Agarwal, Honorary Secretary of ALEMAI, said anti-dumping measures alone would not address the deeper structural challenges confronting Indian manufacturers. He pointed out that the import duty directly increases production costs for a large section of the downstream industry and requires urgent policy attention.

Agarwal also said that while India had made significant progress in expanding primary aluminium production capacity, greater attention should now be given to strengthening downstream manufacturing and retaining more value addition within the country.

Showcase your brand, aluminium recycling initiatives and sustainability vision in our upcoming magazine: Sustainability & Recycling: Aluminium’s Commitment 2026.

Industry seeks long-term policy support for MSMEs

ALEMA said the additional cost pressure can squeeze manufacturers' margins, restrict their ability to compete in domestic and international markets and create difficulties for smaller MSME-led units.

The association believes that a 10-year period of duty relief would give domestic manufacturers greater scope to improve competitiveness, invest in capacity expansion and strengthen their position in the wider aluminium manufacturing ecosystem.

It has also argued that rationalising the duty could encourage investment across industries that use aluminium extrusions and other value-added products.

For India's aluminium industry, the association's demand reflects a broader push to strengthen downstream manufacturing alongside the country's growing primary metal production capacity. While the anti-dumping investigation addresses concerns over imported extrusion products, ALEMA is seeking a longer-term policy response to the cost disadvantages faced by domestic manufacturers.

Looking for unwrought aluminium business opportunities? Explore potential leads of primary aluminium on AL Biz.