The Material Recycling Association of India (MRAI) said that converting aluminum scrap into secondary aluminum is important for the nation, currently accounting for around 40% of India’s total aluminum production, largely from imported scrap.

MRAI stressed that the sector aids in achieving Net Zero 2070 targets, earns foreign exchange by exporting low-carbon alloys, and creates thousands of jobs.

To sustain this growth, MRAI is urging the government to make policy changes. They request reducing the import duty on aluminum scrap from 2.5% to zero and lowering the goods and services tax (GST) on aluminum scrap from 18% to 5% or less. These reforms would ensure a steady feedstock supply, ease liquidity pressures, and support the expansion of small and medium recyclers.