Indian Aluminium Producers Seek RoDTEP Relief to Maintain Global Competitiveness

Indian aluminium producers have urged the government to extend benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to help the sector remain competitive in global markets. Industry players say the lack of adequate export incentives is putting Indian manufacturers at a disadvantage compared to producers in other major aluminium-exporting nations.

Leading aluminium companies have highlighted that rising input costs, including energy and logistics, are increasing pressure on margins. Without appropriate policy support, exporters fear they could lose market share to competitors from countries where governments provide stronger export subsidies or tax relief.

Industry representatives have pointed out that aluminium is a highly energy-intensive sector and fluctuations in energy prices significantly affect production costs. They argue that the RoDTEP scheme could help offset embedded taxes and duties that are not currently refunded through other mechanisms.

Producers have also stressed that aluminium exports play a critical role in strengthening India’s position in the global metals market. The sector supplies a wide range of value-added products used in automobiles, construction, packaging, aerospace, and electrical infrastructure across several international markets.

Companies including major producers in the sector have reportedly approached policymakers to reconsider the current structure of export incentives. According to industry sources, the request focuses on restoring or increasing RoDTEP benefits for aluminium products to ensure exporters can compete with suppliers from regions such as the Middle East, China, and Southeast Asia.

The aluminium industry has also highlighted the potential for India to emerge as a key alternative supplier as geopolitical tensions and trade disruptions reshape global supply chains. However, industry leaders believe this opportunity can only be fully realized if exporters receive policy support that helps balance cost pressures.

Government officials have been reviewing industry representations regarding export incentives as part of broader efforts to boost manufacturing and overseas shipments. The aluminium sector is considered strategically important due to its role in infrastructure development, renewable energy, transportation, and defence manufacturing.

Industry experts say that extending RoDTEP benefits could help strengthen India’s export ecosystem while encouraging further investment in downstream aluminium production and value-added manufacturing.

With global demand for aluminium expected to rise in the coming years, stakeholders believe policy support will be essential for Indian producers to expand their presence in international markets while maintaining sustainable growth.

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