India's bauxite production is expected to increase from 22.08 million tonnes in 2016 to 49.4 million tonnes by 2021. It is expected to grow at about 18 per cent to accelerate to meet the growing demand from the domestic aluminium industry. The growth is projected due to the five-fold increase in mining lease area in Odisha. However, tightening environmental regulations and tribal tensions pose downside risks by slowing down new projects. Bauxite is an important ore (a naturally occurring solid material from which a metal or valuable mineral can be extracted) of aluminium, a metal widely used by automobile industry, for making aircraft, among others.
The Finance Ministry of India has imposed a definitive anti-dumping duty on ?aluminium foil? imports from China. The rates levied are - antidumping duty that ranges from $0.69 per kilogram to $1.63 per kilogram. Aluminium foil is used extensively for the protection, storage, and preparation of foods and beverages. It also finds application in the pharmaceuticals industry for packing medicines; food industry for packing processed foods; and cigarette industry for wrapping. It may be noted, Hindalco Industries Ltd, Raviraj Foils Ltd and Jindal India had jointly filed the petition seeking an anti-dumping duty on ?aluminium foil? imports from China
Aluminium Industry is expanding in India over the last 5 years and it has registered a growth rate of 6.2% in the financial year 2014-15. This should have resulted in dormant capacity of the aluminium smelters to bustling activity. However, most of green projects smelters and other brownfield expansions are lying idle as imports from China and Gulf markets are capturing India's growing market. Domestic producers share has fallen to 45% from 60% a few years back.
China with its huge capacity is likely to churn out 30 million tonnes which has 60% share of global aluminium production.
Downstream producers are enjoying low imports duty and few unscrupulous players import aluminium products under the label aluminium scrap.
It is time that India to raise the import duty from 5% to 10% on