Aluminium Association of India urges policy overhaul to future-proof ₹20 lakh crore industry, protect domestic manufacturing

THEBUSINESSBYTES BUREAU

NEW DELHI, NOVEMBER 4, 2025

The Aluminium Association of India (AAI) has made a strong appeal to the Ministry of Mines, urging immediate policy intervention to safeguard and future-proof India’s aluminium industry — a sector that holds the potential to attract investments exceeding ₹20 lakh crore and power the country’s industrial ambitions under the Viksit Bharat vision.

In its detailed submission, AAI warned that India’s aluminium manufacturing base is facing increasing headwinds due to a sharp surge in imports from aluminium-surplus nations. These imports, driven by global tariff and non-tariff protectionist measures, are threatening to undermine domestic producers and weaken India’s self-reliance in a strategically vital sector.

According to the association, aluminium imports have jumped by more than 50% in the last five years, posing a serious challenge to the competitiveness of Indian manufacturers. To arrest this trend, AAI has proposed a uniform import duty of 15% across all aluminium products and the enforcement of strict quality standards for non-standard scrap imports. These measures, it said, are essential to protect the domestic value chain, prevent India from turning into a dumping ground for inferior scrap, and encourage long-term capital inflows into the sector.

AAI’s representation aligns with the Government of India’s Vision 2047 for the aluminium industry, which recognizes aluminium as a strategic metal vital for defence, power, infrastructure, aerospace, transportation, and overall economic development. India’s aluminium demand, currently at 5.5 million tonnes, is projected to reach 8.5 million tonnes by 2030 and is expected to surge nearly sixfold to 37 million tonnes by 2047. Meeting this demand will require massive investments of over ₹20 lakh crore to build a robust and self-reliant ecosystem.

The association cautioned that without timely reforms, India risks a repeat of the “rare earth crisis,” where strategic materials became tools of trade leverage by dominant producers like China. This concern is amplified by the growing trend of “scrap nationalism” in developed economies such as the US and Europe, which retain high-quality scrap for domestic use while exporting low-grade materials to developing countries like India. Such dynamics could erode India’s manufacturing base, discourage new investments, and derail the Atmanirbhar Bharat mission.

Highlighting the socio-economic importance of the sector, AAI noted that the domestic aluminium industry currently supports over 800,000 direct and indirect jobs and sustains more than 4,000 MSMEs across the country. Immediate investments worth nearly ₹2 lakh crore are already in the pipeline, which could further accelerate job creation, boost MSME growth, and strengthen India’s supply chain resilience.

The association emphasized that aligning tariff and trade policies with national priorities will not only protect the domestic industry but also ensure steady GDP growth and uninterrupted infrastructure development. The submission to the Ministry of Mines follows similar representations made to the Ministry of Finance and the Department for Promotion of Industry and Internal Trade (DPIIT), reflecting a coordinated industry push for inter-ministerial alignment on aluminium sector reforms.

With aluminium at the heart of India’s green energy transition and industrial future, AAI’s call for decisive policy action underscores the need for a level playing field that empowers Indian manufacturers to compete globally, invest confidently, and drive the nation’s march toward a self-reliant, developed economy.