The Aluminium Association of India (AAI), in its representation to the Directorate General of Foreign Trade (DGFT), has urged the government to remove aluminium exports from the recent 50% cut in Remission of Duties and Taxes on Exported Products (RoDTEP) norms. It argued that the government has removed the agricultural products from this 50% cut. Besides, AAI requested 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.

Launched in 2021, export support scheme, RoDTEP provides for a refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods, and are not being reimbursed under any other mechanism at the Centre, state or local level. Thus, the aluminium exports were eligible for RoDTEP benefits of around 3% for Domestic Tariff Area (DTA) units and around 2.2% for SEZ units. However, the government recently issued a notification cutting RoDTEP rates across sectors by half with immediate effect.

Moreover, the industry body noted that India's aluminium exports, valued at around $7 billion and accounting for nearly 2% of the country's total goods exports, are facing increasing pressure in global markets due to rising trade barriers. It pointed that the sector is facing double challenge; export opportunities are shrinking as several countries impose higher tariffs and regulations, while aluminium imports into India are rising sharply. It 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% of the export value for DTA units and 6-7% for SEZ units.