The world’s smelters may have produced a record 67.3 million tonnes of aluminum. China, the world’s largest primary aluminum producer, was operating at an annualized rate of 37.6 million tonnes according to the latest assessment by the International Aluminium Institute (IAI). Whereas combined aluminum production in India stood at 3.6 MT in FY20. As per industry projection 4 million tonnes of aluminium metal production today potentially could increase to 5 million tonnes in about five to six years’ time due to demand for aluminum is expected to pick up as the scenario improves for user industries like automotive and transportation, building, construction, packaging, EV, consumer durables, industrial, and defense, power, infrastructure, and transportation results opened more than 8 lakh jobs directly and in-directly and developed over 3500 SMEs in the downstream sector.
India has been the fourth-largest producer of aluminum in the world with a share of around 5.33 percent of the global aluminum output. The aluminum segment includes primary aluminum, aluminum extrusions, aluminum rolled products, and alumina chemicals. The Indian Aluminum Downstream Industry is facing a number of serious challenges. These include rising operational expenses while global competition is putting downward pressure on selling prices. Therefore, manufacturers have to increasingly find ways of being innovative in the way they manage their businesses. Increases in labor costs, electricity, and transportation are having detrimental impacts on margins, investment in new capacity, and expanded job creation. India needs an approach that will put the downstream aluminum sector on the fast growth track.