Creating a policy for the downstream aluminium segment will be a game-changer and a definite boost for the country’s economy at large. India needs an approach that will put the downstream aluminium sector on the fast growth track. The Niti Ayog too has pressed for such a policy framework. In its report titled Need for an Aluminium Policy for India, the Niti Ayog has highlighted how compared to a world average of 11 kg, India has a per capita aluminium consumption of 2.5 kg, which is low. As far as consumption goes, a look at the global markets shows that the auto and transport sector accounts for 23% of aluminium consumption. Globally, this is followed by construction at 22%, packaging at 13%, electrical at 12%, machinery and equipment at 8.5% each. Consumer durables consume 4.5%, and other segments amount to 4%. In India, the power sector is the biggest consumer of Aluminium at 48%, followed by transport and automobiles at 15%, building and construction at 13%, and consumer durables having 7% aluminum consumption.

Consumption and demand will rise to benefit from a policy that addresses issues of the downstream aluminium segment. For instance, imported downstream products enjoy advantages under various export promotion schemes approved by the government of their originating countries. Having a policy that focuses on providing a level playing field to the domestic downstream aluminium manufacturing will help arrest its declining domestic market share due to subsidy-backed aluminium imports making their way into the country.

In continuing the trend of economic growth, aluminum consumption is expected to increase rapidly across sectors, especially with demand led by EV manufacturing which has received a push from the government. As the Indian Aluminium industry forges forward, only a specific policy will ensure that this demand is met by domestic downstream Aluminium and not by imports.

As a strategic metal, Aluminium will continue to play a crucial role as India goes through a phase of further industrialization. Being a corrosion-resistant & electrically conductive metal impermeable to air, water, ultraviolet, and microorganisms and particularly strong, it is ideal for many uses.