Every industry experiences a pivotal moment, and for India’s sector, that time is now. Historically valued for its strength and versatility, aluminium has become a symbol of India’s pursuit of global leadership through sustainable and innovative practices. With the world’s fifth-largest bauxite reserves, India is strategically positioned to expand its manufacturing capabilities. According to the International Aluminium Institute’s Global Aluminium Outlook 2024, India’s aluminium production is projected to grow annually by 7.5 per cent, reaching 4.2 million tonnes by 2025— underscoring the nation’s rising prominence in the global market.
India’s commitment to industrial growth is evident in substantial investments in advanced technology, automation, and green energy solutions. The Make in India initiative has attracted significant foreign direct investment, enhanced production capacity and boosting the economy. The Aluminium Association of India’s Annual Report 2024 highlights the sector’s growing influence in global markets and its critical role in India’s industrial landscape. As India embraces sustainable practices, the nation is poised to become a leading global aluminium supplier.
The growth story: A market full of possibilities
Global demand for aluminium is surging, driven by the automotive industry’s shift to lightweight materials, the expansion of infrastructure projects, and evolving supply chains. India’s state-of-the-art refineries and smelters provide a robust foundation for this growth. However, the challenge is not just meeting demand but doing so sustainably.
Traditional aluminium production methods have long been associated with high energy consumption and carbon emissions. Today, industry players are actively transitioning to more sustainable practices. The International Energy Agency’s 2024 Aluminium and Sustainability report highlights key trends reshaping the sector, including the adoption of renewable energy, digitalisation of operations, and carbon-neutral technologies.
Technological advancements are revolutionising aluminium manufacturing. Digitalisation and automation are improving operational efficiency, while R&D efforts focus on developing low-carbon aluminium. Innovations in energy-efficient smelting techniques and recycling processes are significantly reducing the industry’s carbon footprint. Hindalco’s 2025 R&D Report highlights breakthroughs in carbon capture and storage, projected to cut emissions by 30 per cent over the next decade. Additionally, Hindalco’s roadmap integrates renewable energy sources into production, aligning with the industry’s broader push toward net carbon neutrality by 2050.
Building a sustainable future: The race against time
Although aluminium is often called the “metal of the future,” its energy-intensive production presents significant challenges.
Leading companies such as NALCO, Hindalco, Vedanta, and Tata Steel are at the forefront of the transition to green energy. NALCO’s USD 1 billion investment in renewable energy, including a 200 MW solar plant in Odisha, signals this shift (NALCO, 2023). Hindalco is targeting net-zero emissions by 2050, while Vedanta’s 2024 Green Aluminium Initiative focuses on renewable energy-based smelting. Tata Steel is also exploring the use of green hydrogen in aluminium production, marking another promising development.
The adoption of circular economy models is another crucial aspect of this transformation. According to the Aluminium Stewardship Initiative (2025), India currently recycles 3 million tonnes of aluminium annually. The 2024 National Recycling Framework promotes eco-friendly practices across the supply chain, ensuring that India’s aluminium production aligns with global sustainability standards.
During my tenure at NALCO and Vedanta, we made significant strides toward sustainability. Initiatives focused on improving energy efficiency, reducing waste, and integrating renewable energy laid the foundation for the industry’s ongoing green transition. It’s encouraging to see these efforts gaining momentum across the sector.
One company that stands out in this journey is Runaya. Instead of viewing aluminium dross as waste, Runaya has turned it into an opportunity, pioneering the recovery of green aluminium with one of the world’s lowest carbon footprints.
The road ahead
The next five years will be crucial in shaping the industry’s future. Meeting growing market demands will require more than just supply capabilities—the industry must evolve into a network of sustainability partners, problem solvers, and innovators. Investments in green infrastructure, collaborations with global research institutions, and supportive policy frameworks will be key to this transformation.
The question is no longer if the industry will change but how quickly and effectively it can lead the transition. With a clear vision, strategic partnerships, and a forward-thinking approach, India is not just preparing for the future—it is defining it. The aluminium sector’s journey toward sustainability and innovation is set to position India as a global leader in the years to come
The author is former CMD of NALCO.