India’s Ministry of Mines has recommended eliminating the import duty on aluminium scrap in a move aimed at improving raw material availability for domestic manufacturers, lowering production costs, and strengthening the country’s recycling ecosystem. The proposal is expected to benefit downstream industries that rely heavily on recycled aluminium for manufacturing and exports.
The recommendation comes amid growing demand for aluminium across sectors such as automotive, construction, electrical equipment, packaging, consumer durables, and renewable energy. Industry stakeholders have argued that reducing or removing import duties on aluminium scrap would ensure a stable supply of secondary raw materials while enhancing the competitiveness of Indian manufacturers in global markets.
Aluminium scrap serves as a key feedstock for secondary aluminium production, which requires significantly less energy than producing primary aluminium from bauxite. Increased use of recycled aluminium can help reduce carbon emissions, lower energy consumption, and support India’s broader sustainability and circular economy objectives.
The proposed duty removal is also expected to ease input cost pressures for recyclers and downstream producers, enabling them to expand production and meet rising domestic and export demand. Industry bodies have maintained that duty-free imports would complement domestic scrap collection rather than replace it, helping bridge the gap between local availability and industrial requirements.
The recommendation will now be considered by the relevant government ministries before any policy changes are announced. If approved, the measure could provide a boost to India’s aluminium value chain by improving access to affordable raw materials, encouraging investment in recycling infrastructure, and supporting export-oriented manufacturing.
Analysts believe the proposal aligns with the government’s efforts to enhance resource efficiency, promote sustainable industrial growth, and strengthen India’s position as a global manufacturing hub. By facilitating greater use of recycled aluminium, the policy could contribute to both economic competitiveness and environmental goals while supporting long-term growth across multiple industrial sectors.
