India’s aluminium sector is facing challenges because of a swift transition from aluminium to UPVC plastic in building projects and increasing low-cost imports from ASEAN nations
What is it?
Aluminium is commonly utilized for producing window frames, kitchen equipment, doors, rooftops, and vehicle components.
It is progressively being substituted by UPVC plastic, which comes from crude oil and raises environmental issues concerning India’s commitments under the Paris Agreement.
India's Position (Output, Inflows & Outflows)
Installed capacity of the aluminum extrusion sector: 3 million tons annually.
Current usage: just 1.2 million tonnes.
Imports: surpass 1.5 million tonnes, fueled by price variations, FTA benefits, and duty-free entry under different HSN classifications.
Consumption: India's per capita aluminium usage is approximately 4 kg, ranking among the lowest worldwide, in contrast to China (25 kg), the US (18 kg), and the global average (11 kg).
Significance of Aluminium in Industry:
Essential for the construction industry: doors, windows, facades, and structural uses.
Crucial for the automotive sector, which is transitioning to lighter materials.
Contributes to the growth of renewable energy, particularly solar.
India's limited aluminium consumption hinders the development of the local industry, even with significant potential demand.
India's Raw Materials:
India possesses considerable bauxite deposits, which are the main ore for aluminium manufacturing.
Key production states:
Odisha – top producer; significant mines in Koraput, Kalahandi, Rayagada, Sundergarh (NALCO’s Panchpatmali mines).
Jharkhand – reserves in Lohardaga, Gumla, Ranchi (Hindalco activities).
Gujarat – deposits in Jamnagar, Kutch, Junagadh.
Chhattisgarh – reserves in Bilaspur, Durg, Amarkantak plateau.
Maharashtra – district of Kolhapur.
Madhya Pradesh – Amarkantak highland, Maikala mountain range.
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