The aluminium industry in India is clearly on the move … huge expansion plans have been announced and the industry leaders, viz. Hindalco and Vedanta have announced mega investments in this sector. Domestic consumption of aluminium, comprising the primary and the secondary sectors, has grown steadily, increasing from 2.63 million tonnes in 2013-14 to an estimate 4.50 million tonnes in 2023-24, reflecting a growth rate of 5.4% per annum. While the demand has grown across all sectors, the full potential of aluminium’s vast applications, is yet to be realised.

A notable feature of the industry is the well-developed recycled aluminium sector that contributes significantly to the reduction of carbon footprint of the sector – however, collection of end-of-life scrap needs to improve significantly in order to reduce the dependence on imported scrap. Primary aluminium production in 2024-25 is estimated to have reached 4.2 million tonnes and India is one of the significant exporters of the metal. Given India’s abundant bauxite reserves and the ability to produce alumina and the metal cost effectively, it is not surprising that big ticket investments are being contemplated. According to recent press reports, Rio Tinto is exploring the feasibility of setting up a low-carbon smelter in India – it will be recalled that Alcan, acquired in 2007 by Rio Tinto, set up a smelter way back in 1938 or so!

With global aluminium consumption hovering around the 100 million-tonne mark, there are large export opportunities for Indian producers, both upstream and downstream. The portfolio of downstream sector has significant room for improvement in terms of producing and exporting more complex specifications, be it in sheet, foil, extrusions, castings or forgings. Investments in R&D and technology upgradation will pay rich dividends in the years to come.