India’s Role in the Global Aluminum Market: Opportunities for Traders & Investors

Introduction

India has one of the largest aluminum industries in the world. It produces around 4.1 million tonnes of aluminum every year and the market is valued at about USD 13.77 billion in 2024. The market is expected to grow steadily at a CAGR of 4% to 7% in the coming years.

India holds a unique and somewhat surprising position in the global aluminum market. It is one of the world’s largest importers of aluminum products, while also being a major exporter. This dual role reflects the complex realities of a growing economy that is both a large producer and an even larger consumer of aluminum.

On one hand, India has developed strong capabilities in aluminum production. Its domestic industries produce millions of tonnes of aluminum every year and Indian companies are known exporters of primary aluminum and alumina products. On the other hand, India’s rapid growth in areas like infrastructure, construction, transportation and renewable energy has pushed demand far beyond what local producers can supply. As a result, India imports a wide variety of aluminum product to meet its rising needs.

 

Aspect	Details
Market Size (2024)	USD 13.77 billion
Growth Rate (CAGR)	4.1% to 7.6%
Production Capacity	~4.1 million tons/year
Major Players	Vedanta, Hindalco, NALCO
Key Consumption Sectors	Construction, Automotive (EVs), Power T&D, Packaging, Electricals
Import Duty (Primary)	7.5%
Import Duty (Scrap)	2.5%
Compliance	Mandatory BIS certification for most products

 

Check the list of Products under the Aluminum sector

India’s Position in the Global Aluminum Market

India plays an important role in the global aluminum trade. It is currently the second – largest importer of aluminum products in the world, just behind the United States. Between October 2023 and September 2024, India imported over 266,000 shipments of aluminum products, a 5% increase from the previous years. At the same time, it exported around $7.25 billion worth of aluminum goods.

This high import volume is closely linked to India’s ongoing economic growth, especially in areas like infrastructure, manufacturing, energy and transportation. As these sectors expand, the need for aluminum rises, whether for building materials, vehicles, electric wires, packaging or industrial machinery.

At the same time, India is also a major exporter of aluminum, which shows strong manufacturing base. Indian companies, such as National Aluminum Company Limited, have built an international presence by exporting alumina and primary aluminum to countries in South-East Asia, the Gulf, China, the USA and more. Another key aspect of India’s global trade strategy is the diversity of its trading partners. India imports aluminum from over 235 countries, which shows how broad and well connected its network is.

Domestic Production vs. Consumption: The Supply Gap

India has made strong progress in building its aluminum production capacity. In the financial year 2022-23, India produced around 4.1 million tonnes of aluminum with companies like NALCO, Vedanta and Hindalco playing a major role.

However, even with this level of production, India still cannot meet all of its aluminum needs. In the same year, India had to import around 1.4 million tonnes of aluminum products to ensure and meet the need of excess demand.

The reason for the gap:

The main reason is rising demand. As India continues to build roads, bridges, airports, housing and factories, the use of aluminum keeps increasing. Additionally, sectors like clean energy, packaging and consumer goods, are also becoming a large consumers of aluminum.

In many cases, even though India produces raw aluminum, some industries need specific types of aluminum products that are not made locally in sufficient quantity or with the required quality. This is especially true for advanced materials or highly processed aluminum goods.

At the same time, to make the best use of its production facilities, India also exports aluminum, mainly in the form of calcined alumina and primary aluminum. These are basic or intermediate products used in industries across the world, where India has the cost advantage and technical expertise to compete.

What India Imports

India imports a wide variety of aluminum products to meet the growing needs of different industries. These items range from raw aluminum to semi-finished and finished goods, depending on the requirements of local businesses and manufacturers.

Table mentioned below represents the breakdown of the major categories of aluminum products imported into India

Product Category	Estimated % of Total Aluminum Imports (Typical)	Notes Reference
Unwrought Aluminum (Primary)	35%	Major import by value and volume
Aluminum Scrap	30%	Top global importer of scrap
Aluminum Wire	10%	Significant import for industry
Aluminum Plates/Sheets/Strips	10%	For automotive, construction
Aluminum Bars, Rods, Profiles	5%	Construction, engineering
Other (including waste, other articles)	5%	Miscellaneous, recycling
Aluminum Tubes and Pipes	3%	Infrastructure, utilities
Aluminum Foil	2%	Packaging, consumer goods
Structures and Parts of Structures	1%	Construction, industrial

What India Exports

While India imports a wide range of aluminum products, its exports are more specialized and focused. The country mainly exports products where it has a strong manufacturing base, cost advantages or technical expertise.

Table mentioned below represents the breakdown of the major categories of aluminum products exported from India:

Product Category	Estimated % of Total Aluminum Exports (Typical)	Notes Reference
Calcined Alumina	40–45%	Major export, high value
Primary Aluminum (Ingots/Billets)	30–35%	Key export, global demand
Aluminum Flat-Rolled Products	10–15%	Expanding export category
Aluminum Wire	5%	Industrial demand abroad
Other (Special Grade Alumina, Zeolite)	5–10%	Niche, high-margin products

Major Trade Partners and Why

The country has built strong trade relationships with multiple countries, based on factors like pricing, product quality and logistics and long-term partnerships.

Major Import Partners

India imports aluminum products from many countries, but three key countries lead the list.

Country	Approximate Share	Notes
China	40%	Largest source of imports by value and volume.
United States	15–20%	Important supplier, especially for high-quality and specialized products.
Germany	10–15%	Notable for advanced alloys and technical products.
Other (e.g., UAE, UK, Japan, Russia, etc.)	25–35%	Includes Middle East, Europe, and other Asian countries.

 

Major Export Partners

India exports aluminum to a wide range of countries across Asia, the Middle East, Europe, and USA. These exports are carefully planned to target regions with rising demand and reliable partnerships.

Country/Region	Estimated Share of India’s Aluminum Exports	Notes
Southeast Asia	25–30% (collective)	Malaysia, Indonesia, Thailand, Vietnam
Far East	15–20% (collective)	South Korea, Japan
Middle East/Gulf	15–20% (collective)	UAE, Saudi Arabia, Oman, Qatar
United States	6–8%	Largest single-country export market outside Asia
Europe	10–15% (collective)	Netherlands, Italy, Germany, France, Spain, UK
Indian Subcontinent	5–10% (collective)	Bangladesh, Nepal, Sri Lanka
Other (Africa, Americas, etc.)	10–15% (collective)	Emerging and smaller markets

 

Why these Trade Partners Matter

• Proximity helps lower transport costs and ensure timely delivery.

• Trade agreements and friendly ties make it easier to do business in future.

• Diversification spreads risk and prevents overdependence on any single country.

• Strategic alignment allows India to balance imports of raw materials with exports of processed or high-value goods.

India’s wide and well-planned trade network ensures it stays competitive in the global aluminum market, whether it’s sourcing needed materials or serving growing international demand.

Economic drivers behind India’s strategy for both Import and Export

Initially, it may seem unusual that India imports large amounts of aluminum while also exporting significant volumes. On further observation this isn’t a contradiction but actually a smart strategy based on economic logic and market realities.

Key Reasons:

a) Meeting Rising Domestic Demand: India’s economy is growing fast. With massive infrastructure projects, expansion in manufacturing and rising consumption, the demand for aluminum has outpaced domestic supply.

• In FY 2018, imports made up about 54% of India’s total aluminum consumption.
• Even with local production reaching 4.1 million tonnes in FY 2022-23, India still imported around 1.4 million tonnes that year

b) Cost Advantages and Product Specialization: India imports products that may be cheaper or more specialized than what is made locally.

• India imports products like scrap or high-tech alloys that are not produced or are cheaper to import from countries like China.

• At the same time, India exports items where it has a cost or quality advantage, such as Calcined Alumina, Primary Aluminum ingots  and billets, and Flat-rolled products. 

c) Efficient Use of Production Capacity: India’s aluminum producers sometimes make more than the local market needs, especially during periods of lower domestic demand.

• Instead of leaving production units idle or reducing output, they prefer to export the surplus

• This helps optimize factory operations, maintain revenue and stay competitive globally

In the recent year between April and June, India’s aluminum export grew by 15.9%, because of the excess supply in the market.

d) Strategic Market Positioning: India is not just reacting to demand, it is actively position itself in global markets.

• By exporting products, it produces well, India builds long-term trade relationships.

• It also secures critical imports by working with multiple countries, avoiding overdependence on one supplier.

This smart balancing act helps India handle global price changes, policy shifts and supply chain issues more effectively.
 

Future Outlook for India’s Aluminum Trade

India’s aluminum sector is well-developed for steady growth, driven by rising demand from infrastructure, construction, transportation and renewable energy projects. With the market expected to nearly double in value by 2030, both imports and exports will continue to play a strategic role. Government investments in roads, airports and smart cities, along with the push for clean energy, will boost aluminum consumption. At the same time, India is aiming to move up the value chain by exporting more processed and high-grade aluminum products. Future trade policies, global market conditions and technological upgrades will shape how India balances its domestic needs with international opportunities in coming years.

List of Products under the Aluminum sector

HS Code	Product Description
7601	Unwrought aluminum (ingots, billets, etc.)
7602	Aluminum waste and scrap
7603	Aluminum powders and flakes
7604	Aluminum bars, rods and profiles
7605	Aluminum wire (not alloyed/alloyed)
7606	Aluminum plates, sheets, strip (>0.2 mm)
7607	Aluminum foil (≤0.2 mm)
7608	Aluminum tubes and pipes
7609	Aluminum tube/pipe fittings
7610	Aluminum structures and parts
7611	Aluminum reservoirs/tanks (>300L)
7612	Aluminum containers (≤300L)
7613	Aluminum gas containers
7614	Aluminum cables (non-insulated)
7615	Household articles
7616	Other aluminum articles