Sustainable growth of aluminum sector in India: An economic analysis of energy intensity, investment, tariffs and competitiveness

Abstract

The production process of Aluminum is highly energy-intensive, contributing significantly to greenhouse gas emissions and poses challenges to its long-term growth, sustainability, and competitiveness. While recent literature on sustainable firm growth has primarily focused on macroeconomic, financial, risk, and governance factors, this study emphasizes the role of micro-environmental factors in influencing growth rates. Using panel data from 10 major aluminum firms spanning 2013 to 2022 and applying a dynamic panel difference GMM model, the study examines how energy intensity, capital investment, input import tariffs, and other economic variables affect the sales growth of downstream aluminum firms. The findings offer important insights into the sustainable development of the aluminum downstream sector and highlight potential policy measures to enhance the global competitiveness and environmental sustainability of Indian aluminum products in the changing global landscape.