India is now among the top four exporters of aluminium to Japan.
The economic relationship between India and Japan is one rooted in decades of strategic trust, cultural respect and shared industrial aspirations. From Japan’s pivotal role in the Bhilai Steel Plant during India’s early years of industrialisation to its critical investment in India’s IT sector in the 1990s, this bilateral partnership has continuously evolved to reflect global priorities. Today, as manufacturing and supply chains undergo massive transformation, India and Japan are once again poised to collaborate more deeply, this time through the lens of aluminium.
India’s emergence as a preferred aluminium export partner to Japan is no coincidence. Amid global supply chain realignments, US-led sanctions on Russia and environmental shifts away from high-emission production processes, Japan’s aluminium imports from India touched approximately $337 million in 2024 according to the United Nations COMTRADE database on international trade. India is now among the top four exporters of aluminium to Japan; a signal of the trust and reliability built into the relationship.
Foundational metal
Japan’s strength lies in its high-tech, quality-driven industries — automotive, electronics, renewable energy and precision manufacturing. Aluminium is a foundational metal for all of these. From battery casings and structural vehicle components to heat exchangers and solar panel frames, its role is critical. However, Japan’s domestic production capacity has been constrained due to the absence of large-scale bauxite reserves, high energy costs and a gradual scaling down of foundry operations aligned with broader industrial shifts. This has created an opening for reliable, quality-focused partners like India.
India, on the other hand, has significant mineral capacity, strong smelting infrastructure and a growing reputation for quality manufacturing. Our domestic aluminium sector is equipped not just to meet internal demand but to cater to global requirements provided we leverage the right partnerships. The India-Japan corridor presents an ideal match: where Japan brings demand, precision technology and downstream applications, India contributes material strength, supply security and cost-effective scalability.
What makes this opportunity more compelling is the shift toward circular economies and sustainable manufacturing. The India-Japan aluminium recycling MoU between JNARDDC and Daiki Aluminium marks a major milestone. This initiative combines Japanese technological expertise in recycling with India’s growing aluminium production base to foster a closed-loop, sustainable model. Such collaborations will not only reduce carbon footprints but also set new benchmarks for responsible industrial growth across the Indo-Pacific.
Central to EV efficiency
Beyond recycling, this partnership holds enormous potential across next-gen sectors. The automotive industry, especially electric vehicles, is one clear example. Aluminium’s light-weighting properties are central to EV efficiency. With Japan’s design and innovation leadership and India’s component manufacturing strength, co-developing aluminium-intensive platforms for global markets could redefine EV supply chains.
Similarly, sectors like marine defence, electronics and grid-scale energy are evolving rapidly. Indian firms are already exploring capabilities in aerospace and marine components to diversify beyond traditional castings. Japanese R&D capabilities paired with India’s robust casting and tooling infrastructure can deliver high-precision, export-grade products that meet international compliance.
For this strategic alignment to fully realise its potential, several enablers must come into play. First, there’s a clear need to enhance language and cross-cultural capability. While institutional ties are strong, operational-level engagement often encounters communication barriers. Japanese firms still prefer direct, high-context communication, and a shortage of Japanese-speaking Indian professionals often delays deal flow, especially in mid-sized industrial collaborations. Investing in structured language training and business cultural exchange programmes can bridge this gap and accelerate outcomes.
Second, both countries must revisit their trade facilitation frameworks to ensure they reflect current realities. The 2011 CEPA agreement laid the groundwork for tariff rationalisation, but it must now expand to cover quality certifications, joint compliance standards, and faster approvals especially in sectors like energy and EVs where regulatory cycles are rapid.
Shifting demand dynamics
Third, there is an opportunity to strategically reduce dependency on singular sourcing geographies. With growing global concerns around concentrated supply chains, India and Japan can jointly position themselves as alternative, transparent, and resilient nodes particularly in aluminium, electronics and rare earth processing. The QUAD framework and G20 alignment further add to this momentum.
It’s also worth noting that demand dynamics are shifting. Japan’s aluminium consumption has seen a slight year-on-year decline, possibly due to market saturation in conventional sectors. However, projections suggest that by 2026, aluminium demand will rise again particularly in automotive and naval applications driven by innovation and electrification.
This cyclical rebound, combined with India’s industrial momentum, makes a compelling case for co-investment in future-ready capabilities. From shared sustainability goals to digital twin-based manufacturing processes and recycling-first design philosophies, the aluminium sector offers both countries a tangible, scalable platform for industrial leadership.
In a world increasingly defined by resilience, sustainability and strategic autonomy, India and Japan have a rare alignment of values and capabilities. By deepening their collaboration in aluminium, both as a material and as a metaphor for strength, flexibility, and lightness, the two nations can drive a new era of industrial competitiveness that is not just bilateral, but global in its impact.
The author is MD & CEO, Taural India Pvt Ltd
Published on August 16, 2025
