The Indian Aluminium Industry is seeking immediate Government support to cross over the challenging phase it is currently facing. This is the Aluminium Industry’s expectations from the upcoming Union Budget 2021.
India stands as one of the rapidly growing economies and fastest emerging markets in the world and the Aluminium Industry plays a vital role in the nation’s economy.
The aluminium sector is of a strategically important for the country and a much-demanded commodity for multiple other industries, as it is a major role player in diversified applications which are crucial for the economy like energy, security, national defence, infrastructure, electrification, aerospace, automobile, consumer durables, packaging etc.
Presently, the Indian Aluminium industry is going through a rough phase and is under immense threat by rising of imports, shrinking of domestic market share and rise in production and logistics costs. Additionally, the non-competitive energy costs and current precarious situation due to the dreadful coal shortage for the industry have negatively impacted the sustainability of Indian Aluminium industry.
The Covid-19 pandemic has plunged the domestic demand and in return, it is denting the domestic aluminium industry, although it would take some considerable time for the domestic demand to rebound. The burden of Central & State taxes & levies amounts to 15% of Aluminium production cost citing the domestic industry a significant disadvantage compared to its global peers. Besides, rising imports and high energy costs are also adversely impacting the industry.
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