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Vedanta Aluminium, India’s largest aluminium producer, has welcomed the signing of the India–UK Comprehensive Economic and Trade Agreement (CETA), terming it a transformative opportunity for the aluminium industry. Mr. Rajiv Kumar, CEO of Vedanta Aluminium, along with Mr. Rajesh Kumar, CEO of BALCO (a Vedanta Aluminium company), represented AAI in a webinar organised by the Ministry of Mines, Government of India.

Chaired by Mr. V.L. Kantha Rao, Secretary, Ministry of Mines, the webinar on “India–UK Comprehensive Economic and Trade Agreement (CETA) and Benefits to the Indian Mineral Sector” saw representatives from key industry bodies including Aluminium Association of India (AAI), Federation of Indian Mineral Industries (FIMI), Aluminium Secondary Manufacturers Association (ASMA), and Material Recycling Association of India (MRAI) put forward their views on the India-UK CETA.

The webinar highlighted the opportunities under CETA, which will see India cut tariffs on 90% of UK products and the UK ease duties on 99% of Indian exports, which is expected to:

• Lower trade barriers and create new export opportunities.

• Double bilateral trade from $56 billion to $112 billion by 2030.

• Offer zero-duty export access for 99% of India’s exports, promoting “Make in India.”

• Encourage adoption of UK’s expert mining practices, including geological, geophysical, and tunnelling techniques. 

Mr V.L. Kantha Rao also offered the Indian Embassy’s support for promoting aluminium sales in the UK through roadshows, signalling strong government-industry collaboration.

Mr. Rajiv Kumar, in his remarks representing AAI, appreciated the signing of the historic treaty. He also highlighted aluminium trade position:

• India produces 4.2 MTPA of primary aluminium and exports 1.6 MTPA of upstream aluminium.

• UK has no primary aluminium production, importing significant quantities to meet demand.

• There is a need to leverage CETA for R&D collaboration and improving product competitiveness.

• Potential threats can arise from the Carbon Border Adjustment Mechanism (CBAM) set for implementation in January 2027, where duty impact could exceed 80% due to Scope 2 emissions. This would nullify the 0% duty market access benefit for India.

“The India–UK CETA is a pathbreaking development that opens unprecedented export opportunities for the Indian aluminium sector. With the accelerating energy transition, aluminium demand is projected to grow by 37% by 2040, driven by sectors such as electric vehicles, solar energy, and transmission and distribution infrastructure. The UK’s lack of primary aluminium production positions Indian manufacturers as key suppliers to this market,” said Mr. Rajiv Kumar, CEO, Vedanta Aluminium.