India’s government has announced a significant step for the recycling industry by removing the import levies on nonferrous scrap metals. This decision, effective for the Union Budget of 2025-26, is seen as a major victory for the Material Recycling Association of India (MRAI) and the broader nonferrous metal trading community.

Key Impact on Nonferrous Metals

The removal of levies applies to several forms of nonferrous recycled metals, including copper, lead, zinc, brass, and lithium-ion battery scrap. MRAI has been actively advocating for this change. They have met with India’s Ministry of Steel, Ministry of Mines, and other government bodies over the years. Their persistent efforts have resulted in a successful reduction of the basic customs duty to zero for these crucial raw materials. These materials play a vital role in India’s recycling industry.

Aluminum Scrap Levy Still in Place

However, aluminum scrap remains an exception, as a 2.5% levy is still imposed. This has been a point of contention. Indian recyclers have long suspected the country’s primary aluminum sector of lobbying to maintain or even raise the levy to benefit primary producers over secondary producers. In previous letters to Indian Finance Minister Nirmala Sitharaman, MRAI argued that aluminum scrap should be duty-free to support recycling efforts. This is especially important given the limited availability of high-quality domestic scrap.

Despite the aluminum levy, the MRAI remains committed to further advocating for its removal and aligning India’s scrap duties with global standards. Additionally, India-based Hindalco, part of the Aditya Birla Group, has shown interest in secondary copper production. They are supporting MRAI’s efforts in the copper scrap sector.

Looking Ahead

While the reduction of nonferrous scrap levies represents a win for India’s recycling sector, continued efforts will be necessary to address the remaining challenges. This is particularly important with aluminum scrap. The MRAI’s advocacy continues, and their focus remains on achieving parity with global scrap trade standards. This will help foster a more competitive recycling environment in India.