Expert Panel Urges Policy Reforms to Protect India’s Aluminium Sector
An expert panel of senior civil servants, industry specialists, and media professionals has called for immediate policy measures to support domestic aluminium manufacturers and encourage investment in India’s aluminium industry. The discussion, organized by Bureaucrats India, focused on the challenges faced by the sector, including increasing import reliance and substandard aluminium flooding the domestic market.
The panel recommended raising import tariffs on primary and downstream aluminium products to 10% and imposing a 7.5% duty on aluminium scrap. These proposals align with measures already applied to other non-ferrous metals such as zinc, tin, and lead. Currently, imports account for 56% of India’s aluminium consumption, a figure projected to rise to 66% by FY2025. Experts warned that this reliance threatens the country’s economic self-reliance and Net Zero goals.
Dr. Jayadev Sarangi, IAS (retd), emphasized the urgency of reforms, stating, “India’s aluminium sector is at a critical juncture. Despite having one of the world’s most integrated aluminium value chains, our reliance on imports and scrap poses a severe threat to economic self-reliance and Net Zero ambitions. Higher duties on imports and scrap are imperative to protect domestic manufacturers and sustain global competitiveness.”
The aluminium sector supports over 8 lakh jobs and 4,000 small and medium-sized enterprises (SMEs) in downstream industries, making it vital to critical industries such as infrastructure, renewable energy, defence, and electric vehicles. Binod K. Singh, IRS (formerly Additional Commissioner), highlighted the risks posed by low-quality, carbon-intensive imports, stating, “Flooding our market with substandard aluminium undermines domestic growth and key national projects like Bharatmala and the 500 GW renewable energy target for 2030. Without raising duties on imports and scrap, we risk derailing our progress.”
Deba R. Mohanty, Vice President at the Society for the Study of Peace and Conflict, underscored the strategic importance of aluminium to national security and economic growth. “Boosting domestic production is indispensable for meeting rising demand, projected to reach 9–10 million tonnes per annum by 2030, and for fostering defence self-reliance. Higher duties on scrap imports will also support India’s transition to a circular economy,” he said.
The panel urged the government to take immediate action to address unfair trade practices, enhance domestic production, and align the aluminium sector with the objectives of Atmanirbhar Bharat. Strategic policy adjustments, they argued, are essential to secure India’s industrial future and its position in critical global supply chains.
