The Aluminium Association of India has requested the government to continue providing export duty benefits for aluminium produced in advance authorization, export-oriented units (EOUs), and special economic zones (SEZs). This could potentially benefit the industry by $60 million and help offset lower overseas realization, supporting India’s aluminium production amid rising global competition.
The ‘Remission of Duties or Taxes on Export Product (RODTEP)’ scheme was initially introduced in January 2021 to boost aluminium exports from India and was in effect until March 2024, later extended to February 2025. India is the second-largest producer of aluminium globally, with an output of about 4.5 million tonnes each year, and about 40% of this aluminium is exported, making India’s aluminium export market worth nearly $5 billion.
The Aluminium Association argues that the relief due to RODTEP is around 2.2% of the total taxes of 8-9% for aluminium producers who are exporting. They emphasize that the local aluminium industry is struggling to remain competitive against global players, and the extension of these benefits would significantly aid the industry.