Protection from imports: The aluminium sector is recommending an increase in protection from imports. The move is aimed at helping realisations of aluminium improve to international levels

Step up in infrastructure spending: Spending on infrastructure sectors like power transmission is expected to boost the demand for aluminium in the country. This will help raise the per capita consumption from current levels that are only a fraction of those existing in developed countries.

The aluminium sector has witnessed a rally in prices over the last one year. The rally has been supported by a rise in global demand and a tightening off supply (aided by the accident at Kaiser Aluminum's refinery). Domestic producers have benefited from the rise in domestic demand and better realisations in the export market.

Abundant bauxite reserves and access to cheap labour have given aluminium manufacturers an edge over their international peers.

Aluminium is a large consumer if power. However, in India, the power sold by the State Electricity Boards is both costly and unreliable, This has adversely affected the overall productivity of the sector.

Another concern pertains to the slow pick up in infrastructure spending that has limited growth to just 6% per annum. As a direct consequence, the per capita consumption of aluminum continues to remain low at 0.5 kgs (as against 16 kgs in the US).