Aluminium Extrusion Manufacturers Association Urges Government to Remove Primary Aluminium Import Duty

The Aluminium Extrusion Manufacturers Association of India (ALEMA) has formally urged the government to remove the 8.25 per cent import duty on primary aluminium imports to support the domestic downstream manufacturing sector.

The appeal follows the Directorate General of Trade Remedies’ decision to initiate an anti-dumping investigation into the import of aluminium extrusion profiles, structures, and related articles from Vietnam, Thailand, and Malaysia. While downstream manufacturers have welcomed this investigation, ALEMA has emphasized that anti-dumping measures alone are insufficient to address the fundamental cost disadvantages faced by Indian producers in the domestic market.

Primary aluminium serves as the foundational raw material utilized for producing billets, which are subsequently processed into extrusions and other value-added items. According to the association, the existing 8.25 per cent import duty increases production costs for a large section of the industry regardless of whether the raw material is sourced domestically or overseas. This structural cost burden compresses manufacturers' profit margins, restricts their ability to compete across both domestic and international markets, and poses viability risks to smaller micro, small, and medium enterprises (MSMEs).

The association has specifically requested the government to rationalise the duty and implement a 10-year period of duty relief. ALEMA stated that such a measure would allow domestic manufacturers and MSMEs to strengthen their competitiveness, expand production capacities, and contribute more effectively to the value-added aluminium manufacturing ecosystem.

Ankur Agarwal, Honorary Secretary of ALEMA, noted that while India has expanded its primary aluminium production capacity, policy focus must now pivot toward strengthening downstream manufacturing and retaining a higher share of value addition within the country. Agarwal added that removing the import duty would lower input costs, enable extruders to offer competitive pricing to downstream sectors—such as fenestration and façade manufacturers, fabricators, solar structure producers, and lighting manufacturers—and establish a level playing field for domestic enterprises.

The association cautioned that the current cost disadvantage also dampens investments across the wider manufacturing ecosystem that rely on a competitive downstream aluminium sector.

"The debate over raw material import duties highlights a crucial balancing act for manufacturing economies. When downstream players and MSMEs face high input costs due to structural duties, their ability to scale and compete globally gets constrained. Policy interventions that address downstream cost burdens, alongside trade remedies, can significantly improve margins and encourage long-term investments across the broader industrial value chain." — Dr. Shishir Gupta, Founder & CEO, StartupLanes