Budget 2023 Expectations: FICCI Seeks Increase In Import Duty of Aluminium

Last Updated: January 19, 2023, 19:24 IST

Finance Minister Nirmala Sitharaman (File photo)

At present, over 60 per cent of India’s demand for aluminium is being met through imports.

Industry body FICCI has sought an increase in the import duty on aluminium and aluminium products to at least 12.5 per cent in the upcoming budget 2023-24, stating that the move will help curb dumping of aluminium products and encourage growth of the domestic manufacturing and recycling.

The present import duty on aluminium and aluminium products is 10%. Aluminium, a resilient metal that retains its fundamental properties even when recycled, is widely utilised.

However, in recent years, there has been a visible surge in subpar aluminium imports, especially from China which constitutes over 85 per cent of downstream aluminium imports at present, FICCI said in a statement.

Moreover, India is also seeing aluminium imports from the US, the UK, Malaysia and the Middle East. Several of these nations support their domestic industries with concessions and benefits, including low interest loans and cheaper power tariffs.

Also Read: Budget 2023 Expectations: Will Rural Demand Push FMCG Sector Up?

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

At present, over 60 per cent of India’s demand for aluminium is being met through imports.

FICCI has also demanded rationalising 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.

See also  LIC Sells 2% Stake In NMDC Between Dec and Mar, Garners Over Rs 700 Cr; Check Details

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.

Read all the Latest Business News here

(This story has not been edited by News18 staff and is published from a syndicated news agency feed)