Indian Aluminium Sector to Stay Resilient Amidst Global Trade Shifts

Indian primary aluminium manufacturers are projected to remain in a healthy profitable state for this fiscal year, countering global trade headwinds, including the recent hike in US tariffs on aluminium imports, according to a report by Crisil Ratings.

- AGENCIES

The US raised the tariff on aluminium imports to 25 percent across all countries, which increased India's aluminium tariff from 2.55 per cent to 25 per cent. But, it had a limited impact on India's aluminium exports directly as the US accounts for less than 5 per cent of India's total aluminium exports, limiting the immediate consequences of the tariff increase.

"Strong operating efficiencies, low-cost operations, and favourable global demand-supply balance will keep margins over a solid USD 650 per tonne," Crisil ratings said.