Indian Aluminium Industry Urges Government Action Amid US Tariff Hike
The Aluminium Extrusion Manufacturers Association of India (ALEMAI) has called for a review of import duties and free trade agreements following increased US tariffs on aluminium imports. India's aluminium extrusion industry, with a 3 million tonne capacity, is operating at 1.20 million tonnes, while imports exceed 1.50 million tonnes. The US has raised tariffs on steel and aluminium imports from 25% to 50%, affecting 20-25 Indian exporters. India's per capita aluminium consumption is 3-4 kg compared to the global average of 11-13 kg. ALEMAI, representing over 250 members, faces challenges from imports, volatile raw material prices, and international trade barriers.
*this image is generated using AI for illustrative purposes only.
The Aluminium Extrusion Manufacturers Association of India (ALEMAI) has called on the government to review import duties and free trade agreements (FTAs) in response to the recent increase in US tariffs on aluminium imports. This move comes as the Indian aluminium extrusion industry grapples with underutilization and fierce competition from imports.
Industry Capacity and Utilization
ALEMAI President Jitendra Chopra revealed that India's aluminium extrusion industry has a substantial annual capacity of 3 million tonnes. However, the sector is currently operating well below its potential:
| Category | Amount |
|---|---|
| Utilized capacity | 1.20 million tonnes |
| Imports | Exceeding 1.50 million tonnes |
The high volume of imports, which surpasses domestic production, is attributed to price differences and concessions under various FTAs.
Impact of US Tariff Hike
The United States has recently escalated its tariffs on steel and aluminium imports from 25% to 50%. This increase has significant implications for Indian exporters:
- 20-25 Indian players export to the US market
- These exporters are directly affected by the tariff hike
Domestic Consumption and Global Comparison
Chopra highlighted a stark contrast in aluminium consumption patterns:
| Region | Per Capita Consumption |
|---|---|
| India | 3-4 kg |
| World average | 11-13 kg |
This disparity suggests substantial room for growth in domestic aluminium consumption, which could potentially help offset the impact of international tariff pressures.
Industry Representation and Challenges
ALEMAI represents over 250 members in the aluminium extrusion sector. The association has identified several key challenges facing the industry:
- Pressure from imports
- Volatile raw material prices
- International trade barriers, such as the recent US tariff hike
Call for Government Action
In light of these challenges, ALEMAI is urging the Indian government to take action. Their requests include:
- Reviewing import duties to level the playing field for domestic producers
- Reassessing free trade agreements to ensure they don't disadvantage local manufacturers
- Implementing measures to boost domestic aluminium consumption
As the global trade landscape continues to evolve, the Indian aluminium industry's appeal for government intervention underscores the complex interplay between international trade policies, domestic production, and market dynamics. The government's response to these concerns could play a crucial role in shaping the future of India's aluminium extrusion sector.
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