Vedanta Chairperson Anil Agarwal has reportedly called for imposing a 12 per cent safeguard duty on aluminium imports into India, similar to the one recently applied to steel. According to Agarwal, such a measure is essential to protect the domestic aluminium industry from a surge in cheap imports.
Image source: Vedanta Aluminium
In April, the Indian government introduced a safeguard duty on steel imports for 200 days, aimed at protecting local producers from an influx of low-quality steel. The move targets explicitly imports priced below the global benchmark.
Agarwal is now urging the government to implement a similar safeguard on aluminium, arguing that India, a rapidly growing economy, is increasingly vulnerable to cheap imports. He pointed out that, with the United States no longer a viable market due to its 25 per cent blanket tariff on aluminium and steel imports, exporting countries will likely shift their focus to emerging markets like India.
In a tweet last week, Agarwal stated, "We all know there are two countries central to the trade war, US and China. But did you know there are two commodities also centrestage – steel and aluminium."
Commending the Indian government's decision on steel, he added, "Big players who are losing conventional markets will look to sell cheap in emerging economies like India."
Agarwal also highlighted that even the United States' closest trade partners, such as Canada and Mexico, have been impacted by import tariffs, which may prompt them to look for alternative export markets like India.
Let us now examine the current volume of aluminium imports into India and assess how much this figure could rise if the United States' trade allies begin redirecting their exports towards the Indian market.
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