Vedanta Chairman highlights aluminium’s strategic role amid global trade war; urges policy support to make India a global aluminium hub

THEBUSINESSBYTES BUREAU

NEW DELHI, MAY 19, 2025

Vedanta Chairman Anil Agarwal has underscored the strategic importance of aluminium in the evolving landscape of global trade, calling on policymakers to position India as the world’s leading aluminium hub. In a recent LinkedIn post, Agarwal emphasized that aluminium and steel have become critical elements in the ongoing global trade war, especially amid rising tensions between the United States and its trading partners.

The United States has imposed a 25 per cent tariff on steel and aluminium imports from all countries, including key allies such as Canada and Mexico. In response to the global disruptions caused by these measures, India has introduced a 12 per cent safeguard duty on steel imports to protect its domestic industry.

Applauding the Indian government’s proactive stance, Agarwal stated, “I commend the government for imposing a safeguard duty on steel. I am confident it will consider a similar step for aluminium.”

He further highlighted aluminium’s growing strategic value, pointing to its lightweight, recyclable properties and increasing application across sectors. “Modern economies are built on the foundation of aluminium and steel whether it’s airports, railways, homes, vehicles, or smartphones. But aluminium has the edge. With India’s vast bauxite reserves, we are uniquely positioned to lead the global aluminium value chain,” he noted.

An infographic accompanying his post spotlighted the top bauxite-producing countries, with India ranking alongside global leaders such as Australia, Guinea, and China. Agarwal stressed that nations facing restricted access to traditional markets due to trade barriers will seek new partners, and India can serve as a key alternative — provided the right policy framework is in place.

“With our abundant bauxite resources, India can become the aluminium capital of the world. This will not only elevate our global stature but also unlock immense potential for downstream industries, generating employment and driving economic growth,” he said.

Vedanta Aluminium, a major force in India’s aluminium sector, has been a frontrunner in strengthening the country’s refining and smelting capabilities through substantial investments. Agarwal’s call for targeted policy support aims to accelerate the development of the aluminium ecosystem and leverage India’s mineral wealth for strategic global advantage.