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Vedanta Aluminium Hails India–UK CETA as Transformative for Aluminium Trade

2025-08-14

Vedanta Aluminium, India’s largest aluminium producer, has welcomed the signing of the India–UK Comprehensive Economic and Trade Agreement (CETA), calling it a gamechanger for the aluminium industry and a milestone in bilateral trade relations.

Rajiv Kumar, CEO of Vedanta Aluminium, and Rajesh Kumar, CEO of BALCO (a Vedanta Aluminium company), represented the Aluminium Association of India (AAI) at a webinar hosted by the Ministry of Mines, Government of India. The session, chaired by VL Kantha Rao, Secretary, Ministry of Mines, brought together representatives from leading industry bodies including the Federation of Indian Mineral Industries (FIMI), Aluminium Secondary Manufacturers Association (ASMA), and Material Recycling Association of India (MRAI).

The India–UK CETA will see India reduce tariffs on 90 per cent of UK goods and the UK extend zero-duty access to 99 per cent of Indian exports, aiming to double bilateral trade from $56 billion to $112 billion by 2030. For the aluminium sector, this translates into:

Zero-duty export access for nearly all Indian aluminium products, boosting “Make in India” initiatives.
Reduced trade barriers and stronger market penetration in the UK.
Collaboration opportunities in advanced mining practices and technologies.

Highlighting the sector’s potential, Rajiv Kumar noted that India currently produces 4.2 million tonnes per annum (MTPA) of primary aluminium, exporting 1.6 MTPA of upstream aluminium, while the UK produces none and relies entirely on imports. He stressed the need to leverage CETA for R&D partnerships and product competitiveness.

However, he also flagged risks from the EU’s Carbon Border Adjustment Mechanism (CBAM), set to take effect in January 2027, which could impose duties exceeding 80% based on Scope 2 emissions—undermining the zero-duty advantage.

“The India–UK CETA is a pathbreaking agreement that unlocks unprecedented export opportunities for Indian aluminium. As global demand for aluminium is set to rise 37 per cent by 2040, driven by electric vehicles, renewable energy, and infrastructure, India is strategically positioned to be a key supplier to the UK market,” said Kumar.

VL Kantha Rao assured continued government support, including Indian Embassy-led roadshows in the UK, to promote Indian aluminium and strengthen industry-government collaboration.