Forecast Period
|
2023-2028
|
Market Size (2022)
|
USD 9.64 Billion
|
CAGR (2023-2028)
|
4.34%
|
Market Size (2028)
|
USD 12.30 Billion
|
Fastest Growing Segment
|
Extrusions
|
Largest Market
|
North India
|
India Aluminum Market is anticipated to register a high
CAGR during the forecast period.
Chemical element aluminum has the atomic
number 13 and the symbol Al. Aluminum has a density that is around one-third
that of steel, which is lower than that of most common metals. It has a strong
affinity for oxygen and when exposed to air, an oxide layer develops to protect
the surface. Aluminum has a color that is similar to silver and has a high
light-reflecting capacity. It is ductile, soft, and non-magnetic. Aluminum is
the tenth most prevalent element in the universe and has just one stable
isotope, 27Al, which is also quite abundant. In radio dating, 26 Al's
radioactivity is used.
A silver-white, lightweight metallic
element, aluminum accounts for 7% of the earth's crust. It is just one-third
the weight of steel. Due to its advantageous qualities and traits, such as its
malleability, ductility, ease of casting, good corrosion resistance, and
durability, it is the most abundant material. It is mined as bauxite ore and
mostly occurs as alumina when combined with oxygen. With a share of around 5.3%
of the world's output, India is the fourth-largest producer of aluminum. It
benefits from having about 10% of the world's bauxite deposits and a developing
aluminum industry. It is anticipated that domestic demand is expected to
rise by 8–10%.
Government Initiatives in the Infrastructure
and Construction Sector
The demand for infrastructure in India is
tremendous. The government of India has authorized Real Estate Investment
Trusts (REITs) to let foreign investors access the country's real estate sector
in an effort to hasten the development of India's infrastructure. The Indian
market, therefore, offers a USD 19.65 billion opportunity in the upcoming
years. The government aims to modernize the building industry's technologies
through the Global Housing Technologies Challenge.
The government has set aside USD 29.2
billion for the Smart-Communities program, which seeks to build sustainable
communities of the highest caliber possible. With USD 16.5 billion in
investments, 75% of the projects were completed by June 2020. The HRIDAY
program, which encourages the expansion of historic cities, has received USD
16.5 million from the national government. AMRUT and Pradhan Mantri Awas Yojana
(PMAY), a national housing program, among other government programs, are
predicted to have a considerable beneficial influence on the infrastructure and
building industries. Additionally, Union Finance Minister Nirmala Sitharaman
announced in her budget speech for 2023–2024 that the Central Government
intended to establish an Urban Infrastructure Development Fund with an annual
budget of USD 1221.78 million that is used to build infrastructure in
Tier-2 and Tier-3 cities across the country. One of the projects, the
government expects to support with USD 2831.48 million in 2023–2024 is the
National Capital Region Transport Corporation, which is implementing the
Delhi–Meerut rapid transit project. This should have a number of positive
effects on the Indian aluminum market, and the CAGR should continue to be high.
Recent Developments:
- In accordance with Budget 2023, the
government intends to establish the Urban Infrastructure Development Fund
(UIDF) in order to construct urban infrastructure in Tier 2 and Tier 3 cities.
An annual budget allocation of USD 1216.05 million is anticipated for this
fund. They also want to promote private investment in infrastructure building.
- The automobile sector received cumulative
equity Foreign Direct Investment (FDI) inflow of about USD 33.53 billion
between April 2000-June 2022.
- By 2023, the Indian government anticipates
that domestic and international investments in the vehicle industry would total
between USD 8 and USD 10 billion.
- The Indian government announced a PLI scheme
for automobiles and auto parts valued at USD 3.49 billion in September 2021.
- The Government of India and the Indian
automobile industry together launched the Automotive Mission Plan 2016–26 to
lay the foundation for the sector's growth.
- The Indian automobile sector seeks to
five-fold its car exports between 2016 and 2026. The total number of
automobiles exported from India in 2022 was 5,617,244. In the upcoming years,
this is anticipated to increase in the market for aluminium in India.
- India spent USD 777.73 billion on
infrastructure in 2022 to ensure the stability of the country.
- In November 2021, India, the US, Israel, and
the UAE organized a new quadrilateral economic summit to focus on projects to
enhance regional infrastructure and advance bilateral collaboration.
- Mr. Narendra Modi, the prime minister,
presented an approximately USD 1330 billion master plan for multi-modal
connectivity in October 2021 with the aim of developing infrastructure to lower
logistic costs and stimulate the economy.
- Through its "National Infrastructure
Pipeline," India plans to invest USD 1.4 trillion in infrastructure over
the next five years. Approximately, 13% of the total FDI inflows of USD 81.72
billion in 2021 were attributable to operations connected to infrastructure.
India is anticipated to build 43,000 dwellings each day till 2022 in order to
achieve the objective of providing housing for everyone by that time. As of
August 22, 2022, the Pradhan Mantri Awas Yojna plan had approved 122.69 lakh
dwellings, started 103.01 lakh homes, and completed 62.21 lakh homes.
(PMAY-Urban).
- The government approved the building of a
USD 122.27 million shared railroad bridge, across the Brahmaputra River, close
to the current Saraighat Bridge in Guwahati in September 2022.
- In Indore, Madhya Pradesh, Mr. Nitin
Gadkari, Minister of Road Transport and Highways, laid the cornerstone for six
NH projects for a total USD 287.89 million in August 2022.
- Between April 2000 and June 2022, there was
a total of USD 26.22 billion and USD 28.64 billion in foreign direct investment
(FDI) in the construction (infrastructure) and construction development
(townships, housing, built-up infrastructure, and construction development
projects) sectors, respectively.
- In November 2021, the Asian Development Bank
(ADB) approved a loan for USD 250 million to support the National Industrial
Corridor Development Program (NICDP). A portion of the USD 500 million
loan for the development of 11 industrial corridors linking 17 states is being
used for this project.
- In December 2021, Hindalco Industries
Limited and Norsk Hydro ASA agreed to acquire each other's Indian Al extrusions
businesses. Hindalco will receive an integrated factory in Andhra Pradesh, a
skilled staff, and experience in value-added, bespoke goods with this
transaction. Moreover, this action is expected to boost the business'
position in South India.
Railways: There are multiple areas in railways itself
where the demand for aluminum is increasing.
Station
Infra: One
element of Railways' infrastructure that will be updated is the foot-over and
rail-over bridges. This would lead to a sharp increase in demand for the
Ferritic series.
Coaches: Railways plans to construct 10,000 coaches
annually over the next four to five years. In the near future, there will probably
be an increase in demand for aluminum.
Moreover,
regulations laid down by Indian Railways stated that all new passenger coaches
must be made of aluminum by 2020. In addition, Indian Railways planed to buy
more coaches, going from 2,500 per year in 2018 to 5,000 per year in 2020.
Train18 /
Vande Bharat Express: The anticipated replacement for Rajdhani and Shatabdi is
Train 18, which has a top speed of 160 kmph. The components of this train are
anticipated to be built of aluminum.
