Rising aluminum prices could slow India's manufacturing growth, says study
A new study warns that rising aluminum prices—driven by India's current import duty structure—are making things tough for manufacturers, even as demand is set to hit 8.3 million tons by 2030.
Sectors like construction, renewable energy, EVs, and electronics are all feeling the pinch.
MSMEs are losing out
India's 3,500 small and medium aluminum businesses pay extra for raw materials because of these duties, while finished products from countries with which India has FTAs come in duty-free.
This makes it harder for local companies to compete or offer better prices to consumers.
Lower duties could mean more jobs and innovation
The study suggests cutting import duties so MSMEs can branch out into products like extrusions and castings.
This could spark job growth, boost exports beyond just bulk metal, and help build stronger industrial hubs across states like Odisha and Maharashtra—all supporting India's big industrial ambitions.