Indian downstream Aluminium industry aligns to support Govt. campaign of Self-reliant India: Managing Director, Jindal Aluminium

The downstream segment of the Indian Aluminium industry positions itself to support the Govt. of Indian’s campaign for Self-reliant India, said by Pragun Jindal Khaitan, Managing Director and Vice-Chairman of Jindal Aluminium.

Jindal also stated that it comes from the vision of being a country that is independent and self-reliant when it comes to manufacturing aluminium products to meet its aluminium material requirements.

“The right focus on reducing our heavy dependency on imports, well-thought government vision and industry strength, can together write the story of ‘self-reliance’ in aluminium for India”, commented by Pragun Jindal.

India’s per capita consumption of Aluminium remains at only 2.5 kg, which is crucially lower than the global average consumption of 11 kg.

Now with a reform in the infrastructural push, there is a huge prospect for an upswing in aluminium consumption in India from the predominating level of approximately 4 million tonnes. “But the sufficient downstream capacity of aluminium available within India has not stopped us from importing aluminium downstream products like extrusions, rolled products, foils and other products from China and nearby countries. The rising imports of downstream aluminium products need to be restricted to promote domestic production and reflect the spirit of Self-reliant”, said Jindal Aluminium’s Managing Director.

The import duty on downstream aluminium products in India is only 7.5% which is not sufficient against the huge incentives given for exports by China. However, many nearby Southeast Asian nations having free trade agreements (FTAs) with India also continue the unabated dumping of downstream aluminium.

Mr Pragun Jindal added: “At 4.1 million tonnes per annum primary capacity and a downstream processing capacity of 3.9 million tonnes, the Indian aluminium sector has a ready platform to scale up to support the growth trajectory of India. Like the ‘Make in India’, this vision of being a country whose industry is independent and self-reliant will need aluminium products to meet the various end-user requirements. But for this, the downstream aluminium sector needs to be known within the aluminium frame of the country. Its growth story is dependent on the two key points—independent recognition (distinct from primary aluminium) and support derived in the form of government policy.”

It would be advisable for the government to consider the demands of the industry and protect the downstream segment by doing away with import duty on primary aluminium, which can make it affordable and increase domestic consumption of the produced aluminium in India.

The Vice-Chairman of Jindal Aluminium pointed out clearly: “Paying a global premium for Indian produced aluminium has to stop. Removing import tariffs on primary aluminium and increasing import duties on downstream aluminium could be a practical solution to this issue, which will incentivize value addition to aluminium within India itself. Immediate attention to this can safeguard lakhs of livelihood associated with the sector.”

The sheer wide range of applications in aerospace, defence, high-speed rails, and other infrastructure projects is an indicator of the reach the Indian downstream aluminium industry comprises.