As India walks towards the $30 trillion economy status and net-zero goals in 2070, aluminium will likely be the metal of the future, the fulcrum around which clean energy, national security, and clean industrialisation pivot. Hailed as a strategic metal globally, aluminium underpins renewable energy infrastructure, electric transport, aerospace, and modern construction. For India, building its domestic aluminium economy is an industrial necessity, but also a national priority to build resilience, self-reliance, and green growth.
A strategic metal for sustainable India
The discussion on aluminium’s strategic importance is particularly timely as the world witnesses growing tensions around trade sanctions, especially concerning critical minerals like bauxite. While aluminium is derived from this critical resource, India’s increasing import dependency underscores a potential vulnerability that could impact its long-term energy and industrial security.
Aluminium is a vital enabler in India’s low-carbon economy transformation. From solar panels and transmission lines to new vehicles and infrastructure, it has a fundamental contribution to play in decarbonisation. According to the Government of India’s Aluminium Vision Document, domestic aluminium demand is estimated to grow six-fold – from the current 4.5 million tonnes per annum (MTPA) to nearly 37 MTPA by 2047. This will involve investments of more than ₹20 lakh crore and a general push towards value-added manufacturing and raw material security.
The Vision Document properly identifies aluminium as a pillar for Viksit Bharat, a green, globally competitive, and self-sufficient nation. Yet, despite the fact that India is the world’s second-largest producer of aluminium and has the fifth-largest bauxite reserves, the industry is confronted with an uphill task: growing import dependence. If India does not act now to create new domestic capacities, it risks jeopardising its long-term growth. Global supply chains are tightening, and in an increasingly protectionist world, any disruption or restriction on aluminium exports could leave India vulnerable to shortages impacting clean energy infrastructure, manufacturing, and national security.
The growing import challenge
India’s imports of aluminium have risen spectacularly, from ₹45,000 crore in 2021-22 to almost ₹80,000 crore in 2025-26, more than half of the indigenous demand. It not only eroded Indian manufacturers’ competitiveness but also exposed the country to international supply interruption and price volatility as well.
These imports are primarily from countries such as China, the ASEAN countries, and the Middle East, countries that have subsidized power, cheap power rates, and export facilitation. Even more sadly, India is becoming a dumping ground for sub-standard aluminium scrap with no adequate BIS standards. This has economic as well as environmental costs since scrap material contains toxic material and preys on domestic recycling.
Alternatively, global peers have already taken steps to protect their aluminium industries: the US has slapped a 50 per cent tariff under Section 232; the EU has implemented the Carbon Border Adjustment Mechanism (CBAM); and other countries such as Mexico and Malaysia have raised tariffs or imposed strict quality controls. India too must take similar impetus to protect its domestic market and draw new investments. Failing to act could mean surrendering control over a metal that underpins national growth, energy transition, and security.
Catalysing employment and green growth
The economic and social benefits of a vibrant aluminium industry are enormous. With over ₹1.5 lakh crore of investments already made, the sector supports over 800,000 direct and indirect jobs and 4,000 SMEs that are spread all across India. A direct aluminium production job generates nearly four times as many in ancillary industries, and hence it is a valuable tool for inclusive development.
In addition, the growth in the sector is complementary to India’s climate action ambition. The recyclability and lightweight nature of aluminium place it at the forefront of creating energy-efficient transport infrastructure and renewable energy grids. Low-carbon smelting triggered by integration of renewable energy and adopting Industry 4.0 technologies will further position India as a global leader in green metals.
Strengthening circularity and sustainability
The circularity of aluminium deserves greater focus as it forms the backbone of sustainable industrial transitions. Aluminium can be recycled infinitely without any loss of quality, which enhances its long-term value as a green material critical for low-carbon growth. Secondary aluminium production offers immense environmental, economic, and energy-related advantages compared to primary aluminium made from bauxite ore. Most notably, recycling requires only about 5 per cent of the energy needed for primary production, dramatically cutting greenhouse gas emissions and overall carbon footprint.
From an environmental standpoint, using secondary aluminium reduces the demand for bauxite mining thereby minimizing land degradation, biodiversity loss, and water pollution. It also helps reduce waste and conserve resources by diverting aluminium scrap from landfills and reintroducing it into the production cycle. This aligns seamlessly with India’s circular economy goals, ensuring that aluminium remains a sustainable cornerstone of its industrial and green growth ambitions.
The road ahead
Aluminium is not merely a metal, it’s an embodiment of India’s growth dream and sustainability. But that dream is contingent on swift and bold action today. Without timely capacity expansion and policy reform, India risks missing its opportunity to lead the global green economy. As India moves forward with its net-zero dream and $30 trillion economy, policy reforms within the aluminium sector will determine the extent to which India is able to balance sustainability and growth.
Through designing a balanced and future-oriented policy space, protecting domestic capability, reinforcing circularity, and enabling low-carbon manufacturing, India can transform aluminium into a strategic asset for its green revolution. If India builds now, it leads tomorrow; if it delays, it risks dependence. The time has come; a strong, self-reliant aluminium industry is the key to energising India’s sustainable and sovereign future.
The author is Director-General, TERI
Published on November 9, 2025
