Industry body ASMA urges government to waive customs duty on primary aluminium, scrap

Industry body ASMA has urged the government to waive the basic customs duty on primary aluminium and aluminium scrap in order to improve raw material affordability, unlock downstream value addition and strengthen MSME competitiveness.

At present, the Basic Customs Duty (BCD) on primary aluminium is 7.5 per cent and aluminium scrap is 2.5 per cent.

The downstream aluminium industry is the backbone of India's MSME manufacturing base, yet it continues to operate under a duty structure that undermines its competitiveness, Aluminium Secondary Manufacturers Association (ASMA) Secretary Naveen Pant said in a statement.


"We urge the government to implement the Vision Document's recommendations by reducing the BCD on primary aluminium from 7.5 per cent to zero and on aluminium scrap from 2.5 per cent to zero. Rationalising these duties will improve raw material affordability, unlock downstream value addition, strengthen MSME competitiveness, and help India realise its manufacturing and export ambitions," he added.

Industry stakeholders believe that 7.5 per BCD on primary aluminium has driven up input costs for downstream manufacturers through import price matching practices adopted by India's primary producers.

With primary aluminium accounting for up to 80 per cent of production costs for downstream manufacturers, ASMA called for a more balanced tariff structure that supports domestic value addition, improves export competitiveness and enables MSMEs to compete more effectively - both within India and in global markets.

Despite India being the world's second-largest producer of primary aluminium, the downstream industry continues to operate at only 50-55 per cent of its installed capacity, even as it supports nearly 10 lakh direct and indirect jobs.

ASMA noted that improved access to competitively priced raw material would help unlock this idle capacity, encourage investment in value-added production, and strengthen India's standing as a global manufacturing hub.