India’s Power, Coal and Mines Minister Piyush Goyal said in an interview yesterday that anti-dumping duties and minimum import prices were being considered to combat increased imports of cheap downstream aluminium products.
“Aluminium industry has faced a lot of stress in the last one year. I believe aluminium has huge potential in India. Our neighbouring countries are giving 13 per cent subsidy to downstream aluminium products and helping them to dump those in India,” explained Goyal.
“I have had conversation with the aluminium industry. I found the imports of downstream products in India has gone up, which impacts both the primary manufacturers and the entire industry. So, if we can stop the indiscriminate (dump) imports of downstream products then we would be able to give leg up to all small and medium enterprises involved in downstream industry, which will give resurgent to entire sector,” he said.
An industry expert interviewed by local media explained that India’s import duty on downstream items like wheels and aluminium foil is 7.5%, which is roughly half that of many other countries. Additionally, many of those companies subsidize power and transportation, making competition within those markets difficult.
“When we have large economies (like the US) who focus on protecting their own businesses, think it is time, India also respects the fact that Indian businesses, entrepreneurs and innovators have the ability to meet the needs of growing India,” said Goyal.
“Sadly over the past 15-20 years…I think this is the cost of economic liberalisation and so called globalisation, which has cost India some of its competitive edge in the face of dumping which we need to set this right,” he went on.
“India cannot afford to be sitting on the sidelines and showing weakness when it comes to taking strong policy decisions. This government does not wait for any industry to die,” Goyal concluded.