Aluminium demand in India is set to increase 60 per cent to 5.3 million tonnes from 3.3 mt over the next five years, according a Crisil Research report.

The growth is set to ride on the back of a host of government initiatives such as Make in India, Smart Cities, Housing for All, rural electrification, and freight corridors, said the report launched at the World Non-Ferrous Conference 2016 in Mumbai on Friday.

The primary demand for increased consumption is expected to come from the power sector, where aluminium is a cheaper, lightweight substitute for copper in transmission and distribution, it said.

Power distribution companies and government are planning investment of Rs 4.3 lakh crore over the next five years to expand the transmission and distribution network.

The secondary demand for aluminium consumption will ride on the growth in the automotive sector. Stringent vehicular emission norms leading to manufacturers reducing vehicle curb weight has come as a boon to the aluminium industry, which is now finding ever greater applications in the sector. As consumer sentiment improves, and expectations of faster economic growth hold sway, automobile demand has a favourable growth outlook for the next five years, said the Crisil report.

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