The Metal Recycling Association of India (MRAI) has urged the government to abolish the 2.5% import duty on aluminium scrap. This move aims to lower raw material costs, promote circular manufacturing, and reduce carbon emissions.
2.5%
Scrap Import Duty
Historic Scrap Duty: 5.0%→2.5%
⏳ Time Machine
How today’s news fits into the bigger picture
10 years ago
In 2016, scrap recycling was mostly unorganized, with minimal regulatory focus on its carbon-saving potential.
Last year
In 2025, India imported around 2 million tonnes of aluminium scrap to feed its growing automotive alloy plants.
Last month
The industry highlighted how global shipping bottlenecks were already raising the landed cost of recycled raw materials.
Yesterday
Indian recyclers paid a 2.5% duty on imported scrap, passing the added costs onto domestic manufacturing units.
Today
The MRAI formally petitioned the government to completely abolish the 2.5% import duty on aluminium scrap.
What happens next?
If abolished, India's secondary aluminium sector is expected to double its processing capacity by 2030.
The battle over recycling is heating up. On Sunday, July 12, 2026, the Metal Recycling Association of India (MRAI) publicly urged the government to scrap the 2.5% import duty on aluminium scrap. Recyclers argue that this tax makes imported scrap unnecessarily expensive, hurting small and medium-sized manufacturers who rely on it to make auto parts, utensils, and construction materials. Recycling aluminium uses 95% less energy than producing it from raw bauxite ore, making scrap a vital weapon against industrial carbon emissions. While primary metal producers prefer duties to protect their domestic refined metal prices, recyclers argue that a duty-free scrap policy is essential to boost India's circular economy. This policy clash highlights the tension between protecting traditional heavy industries and encouraging green, resource-efficient recycling networks.
💭 If you're wondering…
Melting existing scrap metal requires only a fraction of the heat and chemical processing needed to extract pure aluminium from raw rocks.
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