NEW DELHI: The rapid shift from aluminium to plastic is raising significant concerns within the aluminium industry, compounded by cheaper imports from countries in the Association of Southeast Asian Nations. The aluminium recycling manufacturers' body is urging the government to increase domestic consumption of aluminium to mitigate the impact of US tariffs.
"Aluminium products, including window frames, kitchen items, doors, roofs, and automotive parts, are being replaced by UPVC at an alarming rate," stated Jitendra Chopra, president of the Aluminium Extrusion Manufacturers Association of India (ALEMAI). Simultaneously, the government has been promoting the use of UPVC plastic doors, windows, and partitions in tenders, even though the raw material for UPVC is derived from crude oil, which compromises India’s commitment to the Paris Agreement to reduce greenhouse gas.
Chopra has called for urgent measures to bolster domestic consumption of aluminium extrusion products, warning that continued dependency on imports and plastic undermines the sector's competitiveness and exposes it to global tariff fluctuations. India's aluminium extrusion industry has an installed capacity of 3 million tonnes per annum; however, its actual utilisation is only 1.2 million tonnes. Imports exceed 1.5 million tonnes, primarily due to price differences, Free Trade Agreement (FTA) concessions, and duty-free access to value-added products under various HSN codes.
Aluminium extrusion facilities are distributed across the country, but underutilisation persists due to import pressures, high and volatile raw material prices, and production delays. "Unless safeguards are introduced for the aluminium extrusion sector, MSMEs will continue to face severe existential challenges," Chopra warned.
The association is urging India to review its free trade agreements and impose countervailing duties on imports to support the domestic industry. Despite the 'swadeshi' consumption rhetoric following the imposition of US tariffs, the association criticised the government for failing to address aluminium imports.
There is a strong need to emphasize increasing domestic consumption, as India has the lowest aluminium consumption among major economies, even below the global average. China has the highest per capita aluminium consumption in the world, while India's consumption remains one of the lowest. For instance, China's consumption is 25 kg per capita, the United States' is 18 kg, the world average is 11 kg, while India averages around 4 kg.
India has ample opportunities to boost aluminium consumption, which would benefit the metal sector. The construction industry continues to create significant demand for doors, windows, facades, and structural applications. Moreover, the automotive sector's shift towards lightweight materials is expected to drive greater use of aluminium profiles. Similarly, the expansion of renewable energy, particularly solar, offers new growth avenues.