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ALEMAI seeks review of import duties, FTAs to offset US tariff impact
Sep-05-2025

The Aluminium extrusion manufacturers' body Aluminium Extrusion Manufacturers Association of India (ALEMAI) has suggested that the government needs to look at import duties, free trade pacts, and policies that promote domestic consumption so as to mitigate impacts of US tariffs. It also highlighted that though the country has an installed capacity of three million tonnes per annum, the utilisation remains at just 1.2 million tonnes. Meanwhile, the imports account for more than 1.5 million tonnes, largely due to price differences, Free Trade Agreement (FTA) concessions, and duty-free access to value-added products under multiple HSN (Harmonized System of Nomenclature) codes. It added that if the government restricts these imports, the domestic industry can increase production which will be consumed locally, creating value-added products.

Aluminium extrusions have diverse applications including construction electronics, aerospace and renewable energy due to their lightweight, strength, and corrosion resistant quality. On US tariff impact, it noted that per capita consumption of aluminium in India stood at 3 to 4 kg, while the world average is 11 to 13 kg, so if the country increases its domestic consumption, the industry will grow faster and that will automatically mitigate the effect of the US tariff. The US has raised the tariffs on steel and aluminium imports from 25% to 50%.

Moreover, aluminium extrusion facilities across the country are under-utilised owed to import pressures, volatile raw material prices, and production delays. However, despite these challenges, the sector is expected to experience significant growth, driven by infrastructure development, the automotive industry, and the expansion of renewable energy. The Aluminium Extrusion Manufacturers Association of India represents more than 250 members nationwide, ranging from MSMEs to major enterprises.

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