Aluminium major Hindalco today sought government support to enable the domestic industry to take on what it called "foreign economic invasion" and urged it to encourage new investments.
"We seek government support to enable domestic industry to compete with the onslaught of foreign economic invasion. We urge government to encourage new investments to make India self-sufficient to meet domestic demand and a significant player in the world market," Hindalco Managing Director Satish Pai said.
Considering the growth potential of the aluminium industry, the sector needs policy intervention from the government, he said, speaking at the World Non-Ferrous Conference 2016 here.
The cheap imports are eating into growing domestic demand. In the last five years, the imports from the ASEAN (FTA countries) have increased from 6 per cent of the total refined imports to 31 per cent, Pai said, adding India has enough domestic capacity in aluminium, copper and zinc to meet local demand.
The government is examining the flurry of cheap aluminium imports in the country and will take a decision on imposition of minimum import price (MIP) on the metal in the next 15 days, Mines Secretary Balvinder Kumar earlier said.
The Mines Ministry is examining the matter in great depth and has conducted 2-3 rounds of discussions with aluminium industry stakeholders, he added.
India's GDP is expected to grow at least at 8 per cent over the next few years, promising high growth for the non- ferrous industry. With China's growth slowing, India would be the most attractive market for major producers who are struggling with low demand and surplus capacity, Pai said.
The per capita consumption in India vis-a-vis the developed nations shows great potential for growth and with initiatives like Make In India and development of advanced applications, non-ferrous metals would be the real engine for economic expansion, the Director of Aditya Birla firm stated.
The consumption of aluminium in India is poised for a healthy growth over the next five years, from 3.3 MT in 2015- 16 to 5.3 MT in 2020-21. The growth is set to ride on the back of a host of government initiatives such as Make in India, Smart Cities, housing for all, rural electrification and freight corridors, a Crisil report has said.
Pai said the industry needs to invest in R&D and technological innovations to manufacture and commercialise new age applications to compete in the global world.
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