The Government of India has updated its Qualifying Customs Obligations (QCO) list to include aluminium cookware and aluminium beverage cans, aiming to bolster domestic manufacturing in these sectors. The QCO mechanism requires importers to undertake certain domestic production or investment obligations to qualify for concessional customs duty rates, thereby encouraging local industry participation.
Under the revised policy, companies importing the specified aluminium products under preferential duty conditions will now have to meet minimum thresholds of local production or value addition in India. This adjustment comes as part of the government’s efforts to strike a balance between tariff rationalisation, aimed at simplifying and reducing import duties, and targeted protection for sectors deemed strategically important for domestic manufacturing.
The inclusion of these products on the QCO list is expected to provide incentives for investment in local facilities, encourage technology transfer and enhance supply-chain localisation. Industry stakeholders believe this could help smaller domestic producers compete more effectively with imports while contributing to job creation and industrial growth.
While the government continues its broader agenda of customs duty simplification and tariff rationalisation, the selective expansion of the QCO list shows a nuanced approach that supports key manufacturing segments without significantly distorting trade policy. Analysts say this move reflects a calibrated effort to nurture domestic capabilities while integrating with global value chains.
