Aluminium units hit by rising imports, weak exports

STRUGGLING WITH DECLINING exports and rising imports, the domestic aluminium manufacturing industry may put its proposed ₹2 lakh crore capacity expansion plan on the back burner, several industry executives said.

- SURYA SARATHI RAY

From shipments of 2.4 million tonnes (MT) of primary aluminium in FY22, India's exports of these goods declined to 1.8 MT in FY25 due to tariff and non-tariff barriers erected by the US and Europe, among others.

Imports, on the other hand, are on the rise, particularly of scrap and other products such as aluminium plates, foil and structures.

Aluminium scrap imports increased from 1.66 MT in FY22 to 1.81 MT in FY25, while imports of other aluminium products doubled from 0.67 MT in FY22 to 1.2 MT in FY25.

MT in FY25.

"India must respond, not with blanket protectionism, but with smart regulation. A quality firewall is essential to prevent substandard scrap from undermining domestic capabilities and sustainability goals," an official said.