Budget 2023: Ficci asks for increase in import duty of aluminium products

For the next budget for 2023–2024, industry group Ficci has asked for an increase in the import duty on aluminium and aluminium products to at least 12.5 per cent, arguing that doing so will prevent aluminium products from being dumped and promote domestic manufacture and recycling.

Aluminum and aluminium goods currently have a 10 per cent import duty. Aluminium is a strong metal that, even after being recycled, keeps its essential characteristics.

Ficci noted in a statement that there has been a noticeable increase in imports of downstream aluminium in recent years, particularly from China, which currently accounts for over 85 per cent of downstream imports.

Additionally, India is importing aluminium from the Middle East, Malaysia, the United States, and the United Kingdom. Several of these countries provide concessions and incentives to their indigenous industry, such as low interest loans and lower power prices.

India's aluminium industry has been experiencing difficulties due to a drop in worldwide demand, increasing production and logistic costs, an influx of imports, and a loss of market share.

Over 60 per cent of India's current aluminium demand is now satisfied by imports.

Ficci has also called for reducing the inverted duty structure on a number of important materials from 7.5 per cent to 2.5 per cent in order to support domestic industry and stop import dumping.

Additionally, in an effort to encourage highly energy-intensive industries like aluminium, it has suggested the abolition of the cess on coal.

The Union Budget is set to be presented in the Lok Sabha on February 1 by Finance Minister Nirmala Sitharaman.

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