India’s Casting & Foundry Industry in 2026: The $28.7 Billion Shift

India makes 12 million tonnes of castings every year.

This makes India's casting industry the second largest in the world. 11% of global output. The market hit $28.7 billion in 2026.

Expected to reach $46.7 billion by 2031.

And $169 billion by 2047.

5 Big Shifts happening right now:

• EV production crossed 1 million units in FY26 : Aluminium die-casting demand is exploding
• EU carbon levy of 38.8% is hitting Indian foundries hard: Small units are shutting down
• Aluminium castings growing at 11.2%: faster than any other segment
• AI and IoT are entering the shop floor: mold simulation, defect detection, predictive maintenance
• Sustainability is now a buyer requirement : not a brochure line

What’s coming in FY27:

• Global OEMs enforcing carbon compliance as a purchase filter
• 60% domestic value-addition rule for EV components by 2027
• 40% duty on Chinese castings boosting Indian orders
• South India growing fastest at 10.7%-Tamil Nadu and Karnataka leading

Companies making big moves:

• Craftsman Automation 60% revenue growth in H1 FY26. Aluminium segment up 105%
• JS Auto Cast Foundry India Pvt. Ltd Autocast (Coimbatore): Raised ₹300 crores from Premji Invest for capacity expansion
• Hindalco Shipping EV battery enclosures to Mahindra. Scaling to 160,000 units/year
• Nelcast Chennai Fully renewable-powered. Already CBAM-compliant. Supplying Vestas & Siemens Gamesa
• BHARAT FORGE (PUNE) Defense order book at ₹11,130 crore. Signed India's largest-ever small arms contract-250,000+ CQB carbines for the armed forces. The defense segment is expected to grow 30-40% in FY27. A forging giant is becoming India's private-sector defense backbone.

Our Perspective:

The foundries that go green first will get the orders. The rest will compete on price until they can’t.