Aluminium is the 3rd most available element in earth by mass. India?s hunt for extracting aluminium from its ore started in 1808 but took more than 4 decades to bring it to production.
India stands at the eighth position in the list of Aluminium producers in the world. Because of the growing demand from the construction, electrical, automobiles and packaging industry, the production of Aluminium is also catching up. With the per capita consumption of aluminium less than 1 kg compared to about 3 kgs in China and 30 kgs in the USA there lies untapped potential. The fact that almost 44% of the domestic aluminium is consumed by the electrical sector and there are only about 300 applications for the metal in India leaves a lot of room for the domestic sector to grow. Just to put th
Aluminium industry is lobbying with Centre government to increase import duty on aluminium scrap to 10 per cent from 2.5 per cent. In its pre-Budget memorandum to the Government, the Aluminium Association of India has also demanded rise in primary aluminium import duty from 7.5 per cent to 10 per cent. Currently, the customs duty difference of five per cent between the primary aluminium and scrap has led to 56 per cent rise in scrap imports, threatening the survival of aluminium producers in India. Aluminium scrap imports have risen seven per cent to 9.31 lakh tonnes last fiscal. In the first half of this fiscal it has already touched 5.41 lakh tonnes and on an annualised basis it is expected to hit 10.82 lakh tonnes in FY18.
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.