Autobayng News Team
India’s aluminium exports are valued at around $7 billion, accounting for nearly 2 per cent of the country’s total goods exports.“>
New Delhi: The Aluminium Association of India (AAI) has urged the government to exempt aluminium and aluminium products from the recent reduction in benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, warning that the move could impact the competitiveness of India’s aluminium exports.In a representation to the Directorate General of Foreign Trade under the Ministry of Commerce and Industry, the industry body sought the exclusion of products classified under ITC HS Chapter 76 (aluminium and articles thereof) from the government’s notification issued on February 23, 2026, which reduced RoDTEP rates across sectors by 50 per cent with immediate effect.
Requests by AAI
AAI said aluminium exports currently receive RoDTEP incentives of around 3 per cent for Domestic Tariff Area (DTA) units and about 2.2 per cent for Special Economic Zone (SEZ) units, and the steep reduction could significantly affect exporters.
The association has also requested the government to notify RoDTEP rates for FY27 based on the actual incidence of unrebated taxes applicable to the aluminium sector, covering both DTA and SEZ units.
According to the industry body, India’s aluminium exports are valued at around $7 billion, accounting for nearly 2 per cent of the country’s total goods exports. However, exporters are facing growing pressure due to rising tariff and non-tariff barriers in key global markets.The association highlighted that several countries have tightened trade measures affecting aluminium shipments. The European Union’s Carbon Border Adjustment Mechanism (CBAM) has introduced indirect tariff barriers estimated to range between 7 per cent and 50 per cent, while exports to the United States continue to face 50 per cent duties under Section 232 tariffs.In addition, Mexico has raised customs duties on aluminium products to 10–35 per cent from January 2026, further tightening global trade conditions for the sector.
AAI said the domestic aluminium industry is currently facing a dual challenge of shrinking export opportunities and rising imports, and cautioned that reducing export incentives could further weaken India’s position in international markets.
The association has therefore urged the government to align policy support with global trade realities and maintain export competitiveness for the aluminium sector.
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