Copper Demand in India to Grow 7% Due to Energy and Infrastructure

Driven by increasing usage in the renewable energy field and infrastructure advancements, copper demand is expected to increase by approximately 7 percent in the nation in the near future, as per industry experts. According to PHDCCI President Hemant Jain, policy initiatives like the development of industrial corridors, housing for every Indian, national highway projects, and energy transition efforts are boosting the demand for copper, which is expected to rise significantly.

"Copper demand is expected to rise by 7 per cent in India in coming years. The copper sector is expected to attract private investment, supported by handholding by the government, especially through initiatives such as the PLI and Atmanirbhar Bharat," Jain said.

As per industry estimates, India's refined copper output is approximately 555,000 tonnes annually, while domestic consumption exceeds 750,000 tonnes. India imports approximately 500,000 tonnes of copper annually to satisfy domestic demand.

Industry analysts have forecasted that the demand for copper could double by 2030, significantly widening the demand-supply gap and making India reliant and susceptible to foreign countries.

The shift from fossil fuels to renewable energy will necessitate vast quantities of copper to facilitate the production of EVs, solar panels, wind turbines, EV batteries, and more, they stated.

Local conglomerates such as JSW Group, Aditya Birla Group, and the Adani Group have pledged significant investments in copper manufacturing plants to boost domestic output in response to rising demand for the base metal.

"The criticality of copper as an integral part of the country's decarbonisation strategy is not lost to India Inc. Hence, it is making investments in this mineral, not just to bridge the demand-supply gap but also align its policies with those of the government," former steel secretary Aruna Sharma said.