Aluminium demand to rise in India on growing urbanisation and housing projects: IIFT Survey

The Indian Institute of Foreign Trade (IIFT) has indicated in its recent survey that demand for aluminium will grow as a result of urbanisation, development of industrial corridors, rural electrification, Smart City projects, housing projects, and so on and so forth.

“We have used secondary data analysis to provide an overview of the Indian aluminium industry vis-à-vis global aluminium industry and assess the challenges faced by the Indian aluminium downstream sector and its potential along with ITC Trade Map data to explain and analyse the trade structure of the domestic aluminium industry,” said Anil Agarwal, Patron, ASMA (Aluminium Secondary Manufactures Association).

“In order to analyse the dynamics of the aluminium industry after India signed FTA with some supplier countries and India’s duty structure, we used customs tariff data from various sources including Central Board of Indirect Tax (CBDT) and Supply-Use Table,” he added.

The study also discussed the rising requirement of green properties of aluminium and awareness of the climate related requirement to assess the future path for Indian aluminium industry and high-quality primary aluminium import in India at lower tariffs.

Aluminium is a vital lightweight metal used in many areas of applications in both industrial and consumer sectors. On the industrial front, the metal is primarily used in machinery, electrical power transmission equipment, construction, and transport.

For India, the aluminium industry is considered a key player in boosting fuel and cost efficiency, especially in the transportation, electrical & electronics, and building & construction sector. As per NITI Aayog report of 2018, aluminium will help India to achieve its CO2 emissions target by adopting electric vehicles, which improve the share of renewable energy to 40 per cent or more.