8DECEMBER, 2024India's rapid urban development, strong infrastructure expansion, and economic progress have together created substantial demand, enhancing construction efforts in the industrial and logistics sector and supply, which is expected to exceed 60 million square feet each year in the coming 3-4 years.According to a report by Savills India, a global real estate advisory firm, "On an average, 3.4 per cent to 6.7 per cent increase in construction costs for general manufacturing and 4.8 per cent to 6.7 per cent for grade-a warehousing were registered between H1 2020 and H1 2024".The report further said, "Among cities, Kolkata recorded the highest escalation for General Manufacturing costs at 6.7 per cent, followed closely by Chennai (6.5 per cent). For Grade-A Warehousing, Chennai led the surge with a 6.7 per cent increase, with Bengaluru and Hyderabad each witnessing a 6 per cent rise.""This increase can be attributed to the rise in the prices of crude oil, steel, aluminium, cement, labour, equipment rentals and costs of plumbing and fixtures", the report said.Sumit Rakshit, Managing Director, Project Management Services, Savills India said, "India is emerging as a global manufacturing hotspot. Naturally, the demand for manufacturing and warehousing facilities was expected to surge in the coming years. We expect construction costs for industrial and warehousing projects to increase marginally over the next 3-4 years". India has become the world's leading importer of aluminium scrap, a shift that hinders the growth of its domestic industry. Industry stakeholders contend that the anti-dumping tariffs on solar panel components signify an important step in creating a competitive and sustainable aluminium industry.A spokesperson for the Aluminium Association of India, said "We are optimistic of similar measures in the upcoming budget to empower domestic aluminium producers, which will enable them to support the global energy transition and also induce them to invest in added capacity to meet the growing demand".Given that India's aluminium demand is expected to hit 10 million tonnes by 2030, strong actions like increased import duties and anti-dumping safeguards are essential for the industry's sustained growth. The Aluminium Association of India (AAI) has expressed approval of the government's choice to levy anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China. AAI asserts that this move will enhance the domestic downstream aluminium industry by providing greater market opportunities and promoting a self-sufficient aluminium sector in India.The implemented anti-dumping tariffs, valid for five years, seek to limit the arrival of inexpensive imports and promote domestic manufacturing. The alert issued by the Ministry of Finance emphasized that imports from China have severely obstructed the growth of local manufacturing capabilities. TOP STORIESINDIA'S URBAN GROWTH DRIVES ANNUAL LOGISTICS SUPPLY TO 60M SQ. FT.INDIA LEADS IN ALUMINIUM SCRAP IMPORTS, IMPACTING DOMESTIC INDUSTRY GROWTH
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