Why AAI is Fighting to Protect Our Industry from Influx of Cheap Aluminium Imports

The Aluminium Association of India (AAI) is calling on the government to take steps to protect local aluminium producers from cheap imports. This issue is becoming critical for the competitiveness of Indian manufacturers, especially as global trends create market distortions.

The AAI has reached out to the Department for Promotion of Industry and Internal Trade (DPIIT) and the Ministry of Finance. They want to prevent India from becoming a dumping ground for low-cost aluminium, especially as geopolitical tensions increase tariffs and non-tariff barriers.

Aluminium is now regarded as a vital resource for national security and infrastructure development in countries like the United States, the European Union, and India. In fact, the U.S. has raised tariffs on aluminium imports significantly, and the EU has introduced measures that increase the cost of importing aluminium by 7 to 60 percent. These actions reflect how important aluminium is becoming in various sectors, including aerospace and energy.

Despite India making a significant investment of ₹1.5 lakh crore to increase its aluminium production capacity, low-quality imports are still on the rise. According to the AAI, these imports could account for as much as 54% of domestic demand by 2026. This is concerning, especially when you consider that Indian consumption of aluminium has soared by 160% over the past 14 years, while imports have surged by 250%.

The stark contrast between domestic production growth and import increases highlights the pressure faced by local manufacturers. This imbalance poses a real challenge to India’s self-reliance goals, known as Aatmanirbhar Bharat.

Recent statistics reveal that while the domestic market is expanding, the influx of foreign aluminium is reshaping the landscape. If this trend continues, it could severely impact jobs and investments in the sector. Experts suggest that maintaining a protective stance could not only bolster local production but also stimulate economic growth.

In summary, the push from the Aluminium Association of India underscores a looming crisis in the industry. As global market conditions evolve, keeping a keen eye on import policies will be crucial for the future of Indian aluminium producers.

For further reading, you can explore the Aluminium Association.

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aluminium imports, aai, indian aluminium industry, trade barriers, aatmanirbhar bharat