Jabalpur: A new research study released by CUTS
International warns that India’s secondary aluminium sector is under mounting
pressure due to high input costs, even as domestic aluminium demand is
projected to rise from 5.3 million tonnes to 8.3 million tonnes by 2030.
Madhya Pradesh stands at the epicenter of this challenge. As one of
India’s key mineral-rich states, Madhya Pradesh hosts significant
aluminium-related industrial activity across regions such as Jabalpur,
Singrauli, Katni and Satna, supported by robust mining, power generation, and
manufacturing ecosystems. Beyond large production units and ancillary
industries, the state sustains thousands of MSMEs involved in casting, fabrication,
machining, and downstream aluminium processing that form an integrated value
chain that contributes substantially to employment generation, skill
development, and technological advancement across the state.
Addressing this, Navendu K. Bharadwaj of the Aluminum Secondary
Manufacturers Association (ASMA) emphasised that “Duty reduction of primary
aluminum will enable downstream manufacturers to play a key role in driving
demand for aluminum needed for development initiatives to achieve a Viksit Bharat
in 2047. Aluminum value-added products are key components in sectors such as
construction, infrastructure, automobiles, and electronics.”
The CUTS International study notes that the prevailing 7.5% import
duty on primary aluminium keeps domestic prices elevated. The research further
adds that duty reduction would “make it economically viable for primary
producers to supply the domestic market, particularly to MSMEs in casting and
fabrication clusters. The revenue generated could fund skill development and
technology upgrades in secondary manufacturing.”
The study concludes that rationalising duties would strengthen India’s
downstream aluminium sector to unlock greater competitiveness for MSMEs nationwide
and reinforce India’s push toward a resilient industrial base aligned with the
goals of Viksit Bharat 2047.