India to manufacture more aluminium wire in-country and import less under ‘Make in India’

The wire and cable industry, the silent yet one of the most crucial infrastructural pillars of the Indian economy, has come a long way from being a small industry to one of the most fiercely growing industry, over the past one decade. Boosted by momentum in the country’s power and infrastructure segment, the wire and cable industry has been growing at 15 per cent rate annually. According to a recent survey by Net Scribes, the industry is poised to cross the INR 57,000-crore benchmark by 2018. Aluminium wire being one of the mainstays of today’s power infrastructure is slated to draw significant traction from this buoyancy.

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India’s aluminium wire import is on the decline. International trade data spanning last two years shows that India imported 21962 tonnes of aluminium wire in 2016, down 12.2 per cent from 2015, when the total import stood at 25040 tonnes. In 2017, the forecasted volume of aluminium wire imports stands at 37642 tonnes. However, given the Government of India’s thrust on Make in India, the electrical equipment manufacturing industry is going to experience a boost, which means domestic production of aluminium wire will increase bringing the total imports down.

The cost of aluminium wire import has also come declined year-on-year. The total aluminium wire import by India was valued at US$45.3 million in 2016, down from US$60 million in 2015. In 2017, the value of imports is expected to come down further though the estimated value stands at US$81 million.

India imported 100096 tonnes of aluminium wire in the fourth quarter of fiscal year 2016-2017. In first quarter of fiscal 2018, the volume is estimated to drop at 8769 tonnes. 

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The present per capita consumption of wire and cable in India is only about 0.5 kilogram. With the central government allocating increased funds in various infrastructural projects, such as, Deendayal Upadhyay Gram Jyoti Yojna and Integrated power Development Scheme (fund has been raised from INR 4,500 crore to INR 8,500 crore), the electrical equipment manufacturing sector is expected to grow steadily triggering the growth of aluminium wire manufacturing.