Aluminium Sector Creates 8 Lakh Jobs, Powers 4,000 SMEs in Downstream Sector

Investments in India's aluminium industry have generated more than 8 lakh jobs and aided the growth of 4,000 SMEs, particularly in the downstream sector. The suggested extra investment might create 20 lakh additional jobs and support the government’s “Atmanirbhar Bharat” program, aiding the country’s self-sufficiency and economic development. With the backing of the government, the domestic sector is assured it can take a prominent role in India’s path towards sustainability and global competitiveness.

The Aluminium Association of India (AAI) has presented a pre-budget request to the Department for Promotion of Industry and Internal Trade (DPIIT) within the Ministry of Commerce, highlighting the critical role of aluminium in India’s development as the nation aims to achieve developed status by 2047. Although there is a strong demand for aluminium, the sector encounters difficulties in securing new investments, particularly since local consumption is expected to hit 10 million tons annually (MTPA) by 2030. The industry has already put in over INR 1.5 lakh crore ($20 billion) to boost production, yet another INR 3 lakh crore ($40 billion) is needed to satisfy this increasing demand and generate employment.

Aluminium is an essential material for sectors like defence, aerospace, renewable energy, electric vehicles, and infrastructure. To enhance self-sufficiency in aluminium manufacturing, the AAI has urged the government to safeguard the local industry from increasing imports. In recent years, imports of primary aluminium have surged twofold, showing a significant rise in low-grade scrap and downstream goods, especially from China. The AAI credits this increase to reduced import tariffs on aluminium items and the duty difference between raw materials and scrap.