Indian domestic aluminium industry can cater to the country’s demand. Yet, 60pc of aluminium consumed is imported resulting in forex outgo of US$5.5bn, states Rahul Sharma, CEO, Alumina Business, Vedanta.

 

In the wake of the announcement by Nirmala Sitharaman, India’s finance minister, Sharma spoke exclusively with Davis Index about what the government aid spells for the aluminium sector. 

 

“The Indian aluminium industry has invested around $20bn to enhance domestic annual production capacity from 2mn mt to 4.1mn mt, mainly to cater to India’s aluminium demand and create over 1mn jobs. It would also develop over 4000 SMEs in the downstream sector.”

As a part of the package, India’s finance ministry has allowed a joint auction of 500 mining blocks for captive mining for exploration of bauxite and coal.  

Welcoming the decision, Sharma states this will ensure raw material security for the industry and give impetus to India’s efforts towards self-reliance. He added, “India is blessed with abundant reserves of coal, bauxite and other mineral and these reforms will bolster India’s production of these critical resources”

 

Sharma also suggests that the government could promote the industry by giving preference for indigenously produced aluminium for domestic use in line with the Prime Minister’s thrust to become vocal for local products.  

He added that if executed well, these reforms will double these sector’s contribution to the GDP.

 

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