AAI: Anti-dumping duty on Chinese solar components a game changer for domestic aluminium producers

The Aluminium Association of India (AAI) welcomes the Indian government's decision to impose anti-dumping duties on Chinese anodised aluminium frames used in solar components. This measure is anticipated to strengthen the domestic aluminium industry by limiting low-cost imports, improving market opportunities for local producers, and promoting self-reliance within the sector.

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To strengthen the domestic aluminium industry, the Indian government has introduced anti-dumping duties on anodised aluminium frames used in solar panels and modules imported from China. The Aluminium Association of India (AAI) supports this measure to boost local production, improve market access, and foster self-reliance within the sector.

The duties, effective for five years, aim to curb the inflow of low-cost imports that have impeded the growth of India's manufacturing capacity. A notification from the Ministry of Finance highlights the adverse impact of Chinese imports on the development of domestic producers.

Stronger trade protections

Ahead of the 2025 budget, the aluminium industry is advocating for stronger trade protections, including an increase in import duties on primary and downstream aluminium products from 7.5 per cent to 10 per cent. It also proposes a uniform 7.5 per cent duty on aluminium scrap to limit the influx of low-quality imports that undermine domestic manufacturers.

Currently, 54 per cent of India's aluminium demand is met through imports, resulting in an annual foreign exchange outflow of INR 56,291 crore, equivalent to 1 per cent of the country's total import bill. Over the past decade, scrap imports have surged, rising from 869 KT in FY15 to a projected 1,825 KT in FY25.

A significant portion of India's aluminium imports comes from countries such as China, the Middle East, the US, and the UK, raising concerns about quality standards. In contrast, nations like the US and China have imposed steep tariffs and restrictions to safeguard their aluminium industries, recognising the metal as a strategic resource.

AAI's optimistic vision

Despite these global protective measures, India has become the world's largest importer of aluminium scrap. Industry experts view the recently introduced duties on solar panel components as a critical step toward fostering a competitive and sustainable domestic aluminium market. Representatives from the Aluminium Association of India (AAI) express optimism about further measures in upcoming budgets to strengthen local producers and align with global energy transition objectives.

With India's aluminium demand expected to reach 10 million tonnes by 2030, robust policies—including increased import duties and anti-dumping safeguards—are vital for ensuring the sector's long-term growth and resilience.