New Delhi, March 15 The Aluminium Association of India (AAI) has urged the government to exempt aluminium products from the recent RoDTEP rate cut, as it would help Indian exporters remain competitive in the international market.
AAI, the apex body representing the top aluminium producers within the country, in its representation to the Directorate General of Foreign Trade (DGFT), has requested the government to remove aluminium exports from the recent 50 per cent RoDTEP cut, just as the government has already done for agricultural products.
The export support scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), launched in 2021, provides for a refund of taxes, duties, and levies that are incurred by exporters in the manufacturing and distribution of goods, and are not being reimbursed under any other mechanism at the Centre, state, or local level.
It also appealed to the government to fix RoDTEP rates for 2026-27 based on the actual taxes exporters bear, so that aluminium exporters (both regular units and SEZ units) are fairly compensated for the taxes embedded in their products.
The government recently issued a notification cutting RoDTEP rates across sectors by half with immediate effect.
Earlier, aluminium exports were eligible for RoDTEP benefits of around three per cent for Domestic Tariff Area (DTA) units and about 2.2 per cent for SEZ units.
AAI pointed out that India's aluminium exports, valued at around USD 7 billion and accounting for nearly two per cent of the country's total goods exports, are already facing increasing pressure in global markets due to rising trade barriers.
According to the industry body, the sector is currently dealing with a double challenge: export opportunities are shrinking as several countries impose higher tariffs and regulations, while aluminium imports into India are rising sharply.
For instance, the European Union's Carbon Border Adjustment Mechanism (CBAM) could impose additional costs of 7-50 per cent on aluminium exports.
Exports to the United States continue to face 50 per cent duties under Section 232 tariffs, while Mexico increased customs duties on aluminium products to 10-35 per cent from January 2026.
At the same time, expanding Chinese-backed aluminium production capacities in countries like Indonesia are intensifying global competition.
AAI also highlighted that the industry had already submitted detailed data to the government committee responsible for recommending RoDTEP rates.
Based on these submissions, the actual unrebated taxes on aluminium exports are estimated at around 8-9 per cent of the export value for DTA units and 6-7 per cent for SEZ units.