FICCI demands higher import duty on aluminium, aluminium products in Union Budget 2023-24

New Delhi, Jan 20 (KNN) The Federation of Indian Chambers of Commerce & Industry has urged the government to increase the import duty on aluminium and aluminium products from 10 per cent to at least 12.5 per cent in the upcoming Union Budget 2023-24.

This will help in curbing the dumping of aluminium products and encourage growth of the domestic manufacturing and recycling, it said in a statement.

The Indian aluminium industry has been struggling with a slump in global demand, rising production and logistic costs, a deluge of imports, and declining market share.

The Industry body pointed out that in recent year, the subpar aluminium imports have increased significantly, especially from China. This constitutes over 85 per cent of downstream aluminium imports at present.

At present, over 60 per cent of India's demand for aluminium is being met through imports. Currently, we have been importing aluminium from the US, the UK, Malaysia and the Middle East, it pointed out.

The trade association has also asked for a rationalisation of 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.  (KNN Bureau)