‘Aluminium Bharat’ Launched: How Energy Costs And Low Production Could Affect Prices & Jobs Across India

In a major push to support India's aluminium industry, the Aluminium Extrusion Manufacturers Association of India (ALEMAI) has launched the 'Aluminium Bharat' initiative in New Delhi.

The programme was formally unveiled by Jitin Prasada, marking a significant step towards strengthening the country's aluminium value chain.

The initiative aims to bring together policymakers, industry leaders, and global stakeholders to identify key challenges and develop practical solutions for long-term, sustainable growth. It also aligns with India's broader vision of Atmanirbhar Bharat and the goal of becoming a global manufacturing hub.

Aluminium Bharat 2026: A First-of-Its-Kind Exhibition

As part of this initiative, ALEMAI announced 'Aluminium Bharat 2026', India's first comprehensive exhibition dedicated to the entire aluminium value chain. The event will be held from September 26 to 29, 2026, at the Helipad Exhibition Centre in Gandhinagar, Gujarat, alongside Alumex India 2026.

The exhibition will feature:

• Primary aluminium production
• Downstream products like extrusions, rolled and flat products
• Advanced technologies and innovations

It aims to place India on the global map alongside major international platforms such as Aluminium China, Aluminium USA, and Aluminium Düsseldorf.

The event will also reflect confidence in India's extrusion industry and promote reduced dependence on imports.

Industry Under Stress Despite Strong Capacity

While India has a strong installed aluminium capacity of 4.2 million tonnes, the sector is currently facing a significant slowdown.

According to ALEMAI President Jitendra Chopra:

• Production in midstream and downstream segments has dropped by 40% to 50%
• Extrusion units are operating at 1.2-1.3 million tonnes
• Rolled and flat products are at approximately 1.5 million tonnes

This gap between capacity and utilisation highlights the pressure on the sector.

Chopra also pointed out that despite challenges such as the ongoing energy crisis linked to global tensions, India still has around 80% PNG availability and 40% LPG supply, which is helping the industry manage operations to some extent.

Rising Costs and Energy Crisis Impact Operations

One of the biggest concerns raised by the industry is the sharp increase in raw material and energy costs.

Key factors include:

• Global geopolitical tensions, especially in West Asia
• Rising oil and gas prices
• Increased logistics and transportation costs
• Supply chain disruptions

These challenges are particularly difficult for aluminium manufacturing, which is highly energy-intensive.

India also faces one of the highest raw material cost structures globally, mainly due to the limited availability of aluminium scrap - a critical input for downstream production.

Tariff Imbalance and Growing Import Pressure

ALEMAI highlighted serious concerns about trade imbalances affecting domestic manufacturers.

While Indian companies deal with high input costs, the market is seeing a growing influx of low-cost aluminium products from other countries. These imports often benefit from:

• Government subsidies
• Preferential tariffs under Free Trade Agreements
• Excess production capacities abroad

This uneven competition is reducing the competitiveness of Indian manufacturers and affecting domestic production.

Operational Challenges Affect MSMEs

The aluminium sector is also facing several operational hurdles, including:

• Complex and time-consuming regulatory processes
• Inconsistent fuel allocation
• Labour management issues

These challenges are especially severe for Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of the aluminium downstream ecosystem.

Government's Vision and Policy Focus

During the launch, Minister Jitin Prasada emphasised that 'Aluminium Bharat' represents a defining moment for India's industrial growth.

He highlighted that despite global uncertainties such as wars and market fluctuations, India has remained stable and continues to move forward under strong leadership.

Key government priorities include:

• Ease of Doing Business
• Ease of Living
• Supporting MSMEs to expand globally
• Promoting quality manufacturing

He also mentioned that India has successfully progressed in global trade negotiations, including long-pending agreements, and assured that the government will protect and support secondary sectors.

Prasada stressed that India is an open and transparent economy, and while reforms may take time, progress is certain.

Employment and Economic Importance

The aluminium value chain plays a crucial role in India's economy, supporting over 10 lakh jobs directly and indirectly.

Strengthening the downstream sector is essential for:

• Increasing value addition
• Enhancing manufacturing competitiveness
• Supporting India's goal of becoming a $5 trillion economy
• Achieving the long-term vision of Viksit Bharat 2047

Sustainability and Circular Economy Role

Aluminium is also key to India's sustainability goals. It is:

• Infinitely recyclable
• Requires less energy when reused
• Important for reducing carbon emissions

This makes it a vital material for building a circular economy and achieving Net Zero targets.

About ALEMAI

The Aluminium Extrusion Manufacturers Association of India (ALEMAI) is the apex body representing the aluminium extrusion industry, with over 250 members across the country.

It plays a major role in:

• Promoting innovation and sustainability
• Improving global competitiveness
• Supporting industry collaboration
• Acting as a bridge between policymakers and businesses

The launch of 'Aluminium Bharat' comes at a critical time when the industry is facing multiple challenges, from rising costs to global competition. While the sector is currently under pressure, the initiative offers a structured platform to address these issues and unlock growth opportunities.

With strong policy support, better resource access, and industry collaboration, India's aluminium sector has the potential to emerge as a global leader in the coming years.