Copper is critical for Viksit Bharat @ 2047
Copper will play a defining role in the geopolitics of green growth in the coming decades. India has the scale, skill, and ambition to lead the world’s energy transition. With strategic planning, investment, and international collaboration, India can strengthen its place in the global copper value chain, secure its development agenda, and anchor the world’s sustainable future. Copper is not just a metal; it is the backbone of India’s sustainable growth.
Copper: Fueling India’s growth story
Copper is at the heart of India’s transformation acting as a GVA multiplier. As a fair indicator of economic growth of a country, copper’s GVA multiplier role is reflected in its downstream economic linkages, with each tonne processed generating broader jobs, investments and output to support economic growth trajectory. As per the Copper Vision Report of Ministry of Mines, the demand for copper will grow at an elasticity of 1.1- 1.3 relative to GDP through 2030, as rising consumption will drive demand for goods and services across construction, infrastructure, manufacturing and transportation sectors. Copper’s exceptional physical and chemical properties, including electrical and thermal conductivity, recyclability, corrosion resistance, machinability, and castability, make it indispensable across these key sectors. As the nation aspires to improve its quality of life and ensure sustainable economic growth, copper’s role as a critical metal grows increasingly vital.
Surging demand: Data and sectoral drivers
According to the latest data from the International Copper Association India (ICA India) , copper demand in India soared by 9.3% year-on-year in FY2025, reaching 1,878 kilotonnes (KT). This robust growth is a direct result of India’s continued focus on large-scale infrastructure, building construction , clean energy, and emerging technologies. These sectors are not just driving copper usage but are also shaping the country’s future economic trajectory.
Key sectoral growth insights from ICA India Copper Demand Data FY2025:
- Building construction and infrastructure segments remained primary growth drivers registering 11% and 17% year- on – year growth respectively.
- Consumer durables sector saw a 19% increase, driven by strong sales of air conditioners, fans, refrigerators, and washing machines.
- Automotive sector grew by 5%, with the electric vehicle (EV) segment, particularly two-wheelers and threewheelers, recording a 16% rise, highlighting copper’s growing role in clean mobility.
- Industrial motors segment posted 12% growth, reflecting higher demand for energyefficient (IE3) and above motors.
- Higher consumption of wires, cables and transformers together accounted for 43% of total copper demand led by premium residential, logistics, data centres and Grade-A offices along with infrastructure growth.
Strategic vulnerabilities and global context
While the demand projections for copper are encouraging, India currently has limited smelting and refining capacity. The Copper Vision Document 2025 , released by the Ministry of Mines, states that India’s total copper demand will grow by five-fold to reach ~10 million tons by 2047. To meet the rising demand for copper, India needs to add approximately 500 KT smelting and refining capacity every five years.
As per the Ministry of Mines’ Copper Vision document, post commissioning of Kutch Copper’s 500 KT plant in 2025, India’s total smelting and refining capacity has reached 1,216 KT, and another ~1,000 KT capacity is announced to be commissioned by 2030. Even after these projects coming online, India’s copper supply will fall short of rising demand which is set to reach to 3,300 KT by 2030. Thus making large-scale imports inevitable.
With limited smelting and refining capacity, India is vulnerable to global supply disruptions and price volatility. Globally, copper reserves are highly concentrated in South America, Africa, and Australia, with increasing competition for ownership and long-term supply rights. China, recognizing the strategic importance of copper early, currently commands 45% of global copper output and 53% of global refining capacity (IEA, 2023), making it a dominant player in the supply chain. This supremacy enables China to influence international trade flows and pricing trends, highlighting the urgency for India to strengthen its own capacity and global partnerships to secure its development roadmap.
Policy imperatives: Building capacity and attracting investment
India’s copper demand trajectory mirrors the country’s economic and industrial momentum. Policies aimed at promoting renewable energy, sustainable mobility, and infrastructure development have fuelled copper demand, emphasizing its role as a critical resource for the nation’s growth. However, it is important to ask: Is the current pace of copper demand growth sufficient to meet the nation’s long-term Developed India (Viksit Bharat) @2047 agenda?
To achieve self-reliance and realize the Viksit Bharat @2047 goals, India must:
- Accelerate domestic investment in copper smelting, refining, and recycling
- Relooking at the GST structure for copper products and offer some incentives to lower the finance cost in copper processing to improve industry competitiveness in international markets
- Reduce import dependence of copper semis through enhanced domestic copper fabrication and value-added manufacturing.
- Strengthen supply chains by securing long – term partnerships with copper-rich countries and encouraging overseas mining investments
- Build in-use copper reserves, essentially “above-ground mines,” to provide a buffer against supply shocks and price volatility.
- Invest in responsible recycling infrastructure to make it more transparent supporting a robust circular economy. Clearly, in today’s complex
geopolitical landscape, where nations are vying for minerals, including copper, it becomes all the more important for India to strengthen its internal capacities and secure supply chains to meet the burgeoning demand.