India's copper demand set to rise 7% amid renewable energy boom
New Delhi: India's copper demand is projected to grow by around 7% in the coming years, fuelled by renewable energy expansion and infrastructure development, The Times of India reported, citing officials.
Policy initiatives such as industrial corridors, the 'Housing for All' program, national highway development projects, and the energy transition are key drivers of this demand, according to PHDCCI President Hemant Jain.
"The copper sector is poised to attract private investments, supported by government initiatives like the Production-Linked Incentive (PLI) scheme and Atmanirbhar Bharat," Jain stated.
Investment trends: Doubling demand by 2030
Industry estimates indicate that India produces about 555,000 tonnes of refined copper annually, while domestic consumption exceeds 750,000 tonnes, leading to imports of approximately 500,000 tonnes per year.
Experts predict that copper demand could double by 2030, further widening the demand-supply gap and increasing India’s dependence on imports.
The shift from fossil fuels to renewable energy will significantly boost copper demand due to its crucial role in electric vehicles (EVs), solar panels, wind turbines, and EV batteries.
In response, major Indian conglomerates like JSW Group, Aditya Birla Group, and Adani Group have announced major investments in copper production facilities to scale up domestic output.
"The critical role of copper in India’s decarbonization strategy is well recognized by India Inc. Companies are investing in this mineral not only to address the demand-supply gap but also to align with government policies," said former steel secretary Aruna Sharma.
Given the rising prices of copper, she added that investments in production and smelting are also becoming increasingly profitable ventures.
Demand-supply gap and industry challenges
Experts have urged the government to maximize the potential of existing but underutilized local plants. The 2018 closure of Vedanta's Sterlite plant in Tuticorin, Tamil Nadu, resulted in the loss of over 46% of India's copper production capacity, making the country a net importer of refined copper.
Between 2013-14 and 2017-18, India's refined copper production grew at a CAGR of 9.6%, allowing it to be a net exporter during that period.
However, post-2018, domestic production has struggled to keep up with demand, intensifying reliance on imports.
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