Indian downstream manufacturers urge duty cuts to help MSMEs
Downstream aluminum manufacturers want the government to lower customs duties on primary aluminum and scrap, hoping this will ease the strain on MSMEs.
Industry groups say high duties (8.25% on primary aluminum, 2.75% on scrap) force local producers to match expensive import prices, making it tough for smaller businesses to stay competitive.
MSMEs's margins compressed up to 70%
Input costs have jumped 20% to 35% in the last three months, while MSMEs's margins have compressed by up to 70% over recent years.
With India's per-person aluminum use way below the world average (2.5kg vs. 11kg), and foreign trade deals letting finished products in almost duty-free, local manufacturers feel outmatched.
New European Union carbon rules could also hurt exports further, so industry leaders are urging quick action on duty cuts to help Indian businesses survive and grow.