Investments in Aluminium industries are picking up at rapid pace, yet it needs a great push from Government of India. Discuss the major policy directives that are essential to give fillip to the industry. (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 6 years
KEY POINTS
The major sectors identified as key to the country’s Make-in-India initiative consume aluminium. In addition, aluminium is becoming a sector of strategic significance considering the role it plays in energy security, aerospace, defence, infrastructure and automobiles.
The key role the aluminium sector plays is reflected in the rapid pace at which the domestic aluminium producers have been making investments.
Problems faced by the Industry
· The country continues to meet 60% of demand through imports, even as domestic market share declines to 40% in FY19.
· Aluminium comprises roughly 1% of India’s total imports.
· The import of scrap aluminium has posed serious threats—with 57% share of the total imports
· The trade war between the US and China that led to a hike in import tariff on aluminium on both sides, and China’s decision to add aluminium scrap in the restricted import list, are expected to divert the global scrap supply chain towards India due to its subpar standards for scrap import.
Major Policy directives
· Restricting aluminium imports will result in saving foreign exchange outgo.
· If the government wants to curb imports, save foreign exchange, and encourage domestic consumption to boost economic growth, as part of the upcoming Union Budget .
· Interim measure, Government of India need to increase the existing customs duties on both primary aluminium and the scrap metal to 10%, and thereby establish an import duty parity between the two—which is similar to other non-ferrous metals.
· Easy availability of loans via External Commercial borrowings to the entities that exports quality aluminium to foreign countries.
· Special corridor in Railways for Transporting bauxite ores to the Aluminium plant at appropriate time without any delays.
· Reducing the turn around time of ships in the ports will improve the exports in international market.
· Recycling and reusing the water in the industry will help conserve the water resources and prevent the pollution of water bodies, moreover paving the way for sustainable development in the future.
Sahitya 6 years
Please review
IAS Parliament 6 years
Try
elaborating more on major policy directives like increasing the efficiency of
transportation of ores, provision of electricity continuously to the industry,
reusing and recycling the water resource etc. Keep Writing
Raj 6 years
Sir, Kindly Review. Thanks.
IAS Parliament 6 years
Try
to include about some points on increasing the exports of the aluminium
industry and include environmental dimension to the answer. Keep Writing.
Raj 6 years
Nandadeep 6 years
Kindly review.thanks
IAS Parliament 6 years
Try
adding environmental dimension with respect to the aluminium industry. Keep
Writing.
Keeran 6 years
Review please
IAS Parliament 6 years
Try
stressing more on the policy directives for aluminium industry rather than
writing about the metal; try to include points on transportation of
ores, reversing environmental problems, reuse etc. Keep Writing.
