Aluminium Producers Lobby For More Protection For Growth

ENA Sectors 2024-11-04 14:42:03 New Delhi, Nov 4 (KNN) The Aluminium Association of India (AAI) has submitted pre-budget recommendations to the Department for Promotion of Industry and Internal Trade, proposing significant measures to boost domestic production and reduce import dependence in the aluminium sector. In its submission, AAI outlined plans for a substantial Rs 3 trillion investment over the next six years to meet India's growing aluminium demand, which is projected to reach 10 million tonnes per annum by 2030. The industry has already invested Rs 1.5 trillion to achieve a production capacity of 4.2 MTPA, demonstrating its commitment to expansion. The association highlighted the stark contrast between India's annual per capita aluminium consumption of 3 kg and the global average of 12 kg, emphasising the sector's growth potential. AAI representatives stressed aluminium's critical role in strategic sectors including defence, aerospace, renewable energy, and electric vehicles. To protect domestic producers, AAI has recommended increasing import duties on primary and downstream aluminium products from 7.5 per cent to 10 per cent while maintaining the current 7.5 per cent duty on aluminium scrap. However, there are millions of down-stream industries that see the move as protectionist and not in the interest of the nation. India boasts of one of the largest reserves of Bauxite, raw material of Aluminum and has one of the most efficient producers, still the local producers want more protection questions Federation of Indian Micro and Small and Medium Enterprises (FISME). The Aluminum producers association on the other hand argues these measures would curtail cheap imports and foster domestic recycling initiatives, contributing to a circular economy. The industry currently supports over 800,000 direct and indirect jobs and more than 4,000 SMEs in rural areas. With the proposed investment, AAI projects the creation of an additional 2 million jobs, supporting the government's Atmanirbhar Bharat initiative. The association noted that the sector currently faces a tax burden accounting for approximately 17 per cent of production costs. Industry representatives maintain that with appropriate policy support and import regulations, India's aluminium sector could emerge as a global manufacturing hub, despite challenges from doubled primary aluminium imports in recent years that have deterred new investments. (KNN Bureau) 39796 https://knnindia.co.in/news/newsdetails/sectors/aluminium-producers-lobby-for-more-protection-for-growth 2024-11-04 14:42:03 knnindia.co.in Aluminium Producers Lobby For More Protection For Growth