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13/12/2024
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India’s rise as the world’s second-largest aluminium producer: Economic implications and future prospects

India has recently achieved a major milestone by becoming the world’s second-largest producer of aluminium. This accomplishment highlights the country’s robust industrial growth and expanding capabilities in the non-ferrous metal sector. The latest data for the first quarter of fiscal year 2024-25 reveals substantial growth in aluminium production, alongside increases in the output of other key minerals such as iron ore, limestone and manganese ore.

India is also ranked as the third-largest producer of lime and the fourth-largest producer of iron ore globally. The Ministry of Mines noted on August 1, 2024, that the sustained growth in iron ore and limestone production reflects strong demand from industries like steel and cement. This growth, combined with rising aluminium production, signals ongoing robust economic activity in key sectors such as energy, infrastructure, construction, automotive, and machinery.

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Growth trends in key minerals

According to provisional data from the Ministry of Mines, primary aluminium production in India increased by 1.2% in the first quarter of FY 2024-25, rising from 1.028 million tons in April-June 2023 to 1.043 million tons in April-June 2024. This growth demonstrates India’s strategic focus on enhancing its manufacturing and industrial sectors.

Several factors contribute to India’s aluminium production surge, including abundant bauxite reserves, advancements in mining technology, and supportive government policies. These elements have collectively driven increased production and demand, particularly in sectors where aluminium’s lightweight and durable properties are highly valued.

Significant achievements in other minerals

Iron ore production reached 275 million metric tons (MMT) in FY 2023-24, with a notable 9.7% increase in the first quarter of FY 2024-25, rising from 72 MMT to 79 MMT. Limestone production, essential for the cement industry, grew by 1.8%, from 114 MMT to 116 MMT. Manganese ore production also saw an 11% increase, reaching 1.0 MMT from 0.9 MMT in the previous year.

These impressive figures underscore the strength and resilience of India’s mineral production sector. The sustained growth in aluminium and other key minerals enhances the country’s industrial output, boosts employment, contributes to GDP growth, and strengthens India’s position in international trade.

Future prospects and strategic goals

India’s advancement in aluminium production aligns with its broader economic goals of achieving self-reliance and reducing import dependency. Technological innovations and research are pivotal in driving sector growth, with state-of-the-art mining techniques and efficient production processes enhancing output and competitiveness.

The future outlook for India’s aluminium industry is promising, with government initiatives focused on infrastructure development and the push for electric vehicles expected to drive further demand. Investments in expanding production capacities and modernizing facilities are likely to sustain and accelerate growth.

Events like IFEX 2024, the 20th International Exhibition on Foundry Technology, Equipment, Supplies, and Services, and the 72nd Indian Foundry Congress will showcase India’s advancements in aluminium production and foundry technologies. These events provide valuable opportunities for collaboration, innovation, and business development.

Conclusion

India’s emergence as the second-largest aluminium producer globally marks a significant achievement in its industrial journey. Supported by technological advancements, robust demand, and proactive government policies, India is well-positioned to become a global leader in the non-ferrous metal sector. The country’s continued growth in aluminium production and other key minerals underscores its potential to play a major role on the global industrial stage.

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