Last Updated: January 19, 2023, 19:24 IST
Industry body FICCI has sought an increase in the import duty on aluminum and aluminum products to at least 12.5 per cent in the upcoming budget 2023-24, stating that the move will help curb dumping of aluminum products and encourage growth of the domestic manufacturing and recycling .
The present import duty on aluminum and aluminum products is 10%. Aluminum, a resilient metal that retains its fundamental properties even when recycled, is widely utilized.
However, in recent years, there has been a visible surge in subpar aluminum imports, especially from China which constitutes over 85 per cent of downstream aluminum imports at present, FICCI said in a statement.
Furthermore, India is also seeing aluminum imports from the US, the UK, Malaysia and the Middle East. Several of these nations support their domestic industries with concessions and benefits, including low interest loans and cheaper power tariffs.
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The aluminum industry in India has been struggling with a slump in global demand, rising production and logistic costs, a deluge of imports, and declining market share.
At present, over 60 per cent of India’s demand for aluminum is being met through imports.
FICCI has also demanded rationalizing the inverted duty structure on several key materials from 7.5 per cent to 2.5 per cent to encourage domestic manufacturing and combat the dumping of imports.
It has also recommended elimination of cess on coal in a bid to support highly power-intensive industries like aluminium.
Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget in the Lok Sabha on February 1.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)