Indian Aluminium Association Urges Extension of RODTEP Scheme Amid Global Trade Uncertainties

[Indian Aluminium Association Calls for Extension of RODTEP Scheme to Support Export Enterprises]

The Aluminium Association of India (AAI) has urged the government to extend the applicability of the "Remission of Duties or Taxes on Export Products" (RODTEP) scheme for aluminium producers in Special Economic Zones (SEZs), as the policy expired in February this year. AAI emphasized that with increasing global trade uncertainties, failure to extend the policy could lead to production cuts, layoffs, and hindered domestic economic growth in India's aluminium industry.

India is the world's second-largest aluminium producer, with an annual capacity of 4.1 million mt, and has invested over $20 billion in aluminium industry development. Currently, export-oriented aluminium enterprises still bear significant central and state taxes, accounting for 10% of production costs. In a letter to India's Finance Minister, AAI pointed out that if the RODTEP policy is not extended, the global competitiveness of India's aluminium exports will be adversely affected.