FIREWALLING THE NEW STEEL

India's aluminium sector is thriving yet vulnerable to import dumping. Will timely policy action protect its strategic future? By ASHISH SINHA

- ASHISH SINHA

INDIA'S ALUMINIUM industry is at a critical inflection point. On one hand, you have the promise of a sector that could catapult India into global manufacturing stardom — a homegrown, high-efficiency, and green-ready aluminium powerhouse. On the other hand, unchecked imports and an uneven global playing field threaten to flatten its wings before it can truly soar. Amid the strategic push for Atmanirbhar Bharat, aluminium might well be the metal that determines whether India's ambitions melt under global pressure or shine through.

Vedanta Aluminium's staggering rise - producing over half of India's aluminium and leading the charge in low-carbon products - is impressive, but it also underscores a paradox. Even as domestic players like Vedanta invest in innovation, sustainability, and scale, they face a deluge of low-quality aluminium scrap and primary products being dumped into the country, eroding market viability and future investments. And yet, oddly enough, policy safeguards that protect other metals like steel have eluded aluminium.

"Just as the 12 per cent safeguard duty on steel imports sent a strong signal of support to domestic producers, a similar duty on aluminium - particularly scrap and primary ingots - can provide a much-needed buffer," argues Aruna Sharma, former secretary to the Government of India and noted development economist. "Without it, we're creating disincentives for domestic manufacturers while rewarding environmentally unverified imports." So where does that leave us?

Sector in Peril?