India’s aluminium production experienced a modest uptick during the April to February period of the financial year 2024-2025, recording a 0.9 per cent increase to reach 38.36 lakh tonnes (3.836 million tonnes), compared to 38 lakh tonnes (3.8 million tonnes) in the same period the previous year, according to provisional data from the Ministry of Mines. This incremental growth echoes the more comprehensive tendencies in India’s mineral production.
For instance, iron ore production rose by 4.4 per cent to 263 million tonnes from 252 million tonnes. In comparison, manganese ore production saw a 12.8 per cent increase to 3.4 million tonnes from 3 million tonnes during the same period. Bauxite production, crucial for aluminium manufacturing, also grew by 3.6 per cent to 22.7 million tonnes, up from 21.9 million tonnes.
Industry analysts attribute the modest growth in aluminium production to several factors. The global aluminium market has been volatile, with price fluctuations impacting production decisions. Additionally, the increasing reliance on imported bauxite has influenced production dynamics.
India’s aluminium sector is experiencing a remarkable transition, with domestic producers increasingly relying on imported bauxite to fulfil rising demand. In 2023, bauxite imports surpassed 3.7 million tonnes, a 6.3 per cent Year-on-Year growth. This acceleration persisted in 2024, with an additional 20 per cent increase to over 4.5 million tonnes.
Most of this demand market originated from the booming domestic productions, valued at USD 11.28 billion in 2023 and anticipated to reach USD 18.84 billion by 2030 — at a forecasted 7.6 per cent compound annual growth rate. Aluminium consumption is being thrust by vital industrial segments of the country, such as construction, automotive, and electronics. Construction, in particular, has adopted aluminium’s lightweight yet durable characteristics, incorporating it into modern infrastructure projects.
Despite challenges, the aluminium industry remains optimistic about future growth. The India Aluminium Market was valued at USD 13.77 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 6.27 per cent through 2030. This growth is expected to be driven by rapid urbanisation and ongoing infrastructure development projects nationwide.
However, the industry faces headwinds, particularly concerning international trade policies. Recent tariffs imposed by the United States on steel and aluminium imports are anticipated to impact India’s aluminium exports. Producers are considering shifting focus to alternative markets in Europe and Southeast Asia to mitigate potential losses.
In summary, while India’s aluminium production has only slightly increased in the current financial year, the industry’s long-term outlook remains positive, bolstered by domestic demand and strategic initiatives to navigate global trade challenges.
Responses
