The Material Recycling Association of India (MRAI) is urging the Indian government to remove the 2.5% Basic Customs Duty (BCD) on aluminium scrap imports to boost domestic recycling, lower production costs, and strengthen the circular economy. According to MRAI, the duty increases the landed cost of recycled aluminium, reduces the competitiveness of Indian manufacturers, and discourages the use of recycled metal in industries such as automotive, construction, electrical equipment, packaging, and consumer goods.

Aluminium scrap is a critical raw material for secondary aluminium production. Recycling aluminium uses up to 95% less energy than producing primary aluminium from bauxite, generates lower carbon emissions, and reduces dependence on mining while conserving natural resources.

MRAI argues that removing the import duty would have multiple benefits:

• Lower input costs for recyclers and downstream industries.
• Improved competitiveness of Indian manufacturers domestically and internationally.
• Increased availability of recycled aluminium to meet rising demand.
• Encouragement of sustainable manufacturing and investment in recycling infrastructure.
• Reduction in greenhouse gas emissions and energy consumption, aligning with India’s circular economy goals.

Industry growth drivers include electric vehicles, renewable energy infrastructure, urban construction, consumer electronics, aerospace components, and packaging. Recycled aluminium plays a key role in applications such as lightweight automotive components, doors and windows in construction, electrical conductors, beverage cans and foils, and household consumer products.

MRAI emphasizes that supportive policies for metal recycling are critical for India to meet sustainability objectives while remaining competitive globally. Reducing or eliminating the import duty would help the domestic recycling sector grow, encourage greater adoption of recycled aluminium, and lower carbon intensity in industrial production.

While the government has not yet responded, the association expects further discussions during upcoming budget and trade policy reviews. The decision will need to balance domestic industry competitiveness, customs revenue, trade policy, and environmental objectives.

Ultimately, MRAI’s proposal highlights the importance of policy measures in supporting the growth of India’s aluminium recycling industry and advancing sustainability targets while fostering economic competitiveness.