India’s bauxite mining sector has experienced notable growth, with production reaching 23.93 million tonnes in the fiscal year 2023-2024, an increase of 86,000 tonnes compared to the previous year.
Export Dynamics
Despite this production growth, India’s bauxite exports have seen a decline. Between February 2023 and January 2024, the country exported 52 shipments of bauxite, marking a 72% decrease compared to the preceding twelve months. These exports were facilitated by 22 Indian exporters to 27 buyers, with Slovenia, Nepal, and France being the primary destinations.
The reduction in exports can be attributed to several factors, including the imposition of a 15% export duty on bauxite. The Federation of Indian Mineral Industries (FIMI) has advocated for the removal of this tariff to better utilize low-grade mineral resources and enhance export competitiveness.
Import Trends
Concurrently, India’s bauxite imports have been on the rise. In 2023, imports exceeded 3.7 million metric tonnes, representing a 6.3% year-over-year increase. This upward trend continued into 2024, with an additional 20% increase, highlighting the domestic industry’s growing reliance on imported bauxite to meet the demands of the expanding aluminum sector.
Industry Outlook
Looking ahead, India’s aluminum industry is expected to witness significant changes. Projections for 2025 indicate an increase in alumina production within the country, which may influence bauxite sourcing strategies. Additionally, global trade dynamics, including potential tariff adjustments and geopolitical factors, are anticipated to impact bauxite and aluminum markets.
In summary, while India’s bauxite production remains robust, export activities have declined due to policy measures like export duties. Simultaneously, the rise in imports underscores the domestic industry’s efforts to balance resource availability with the growing demands of aluminum production.
