New Delhi, June 19 -- India's current tariff regime is weakening domestic value addition in the aluminium sector by favouring primary metal producers at the expense of downstream manufacturers, according to a report by the Global Trade Research Initiative (GTRI).

Tariff Structure Favours Primary Producers Over Manufacturers

The GTRI report, 'India's Aluminium Sector: How Tariff Policies Are Undermining Value-Added Manufacturing', said that despite India's position as a low-cost producer of primary aluminium, it has failed to build a globally competitive downstream industry.

It argued that the existing tariff regime benefits primary producers while raising input costs for downstream manufacturers competing with lower-duty imports of fin...