Why India Needs 3.2 MT Copper?

India’s next big leap, from EVs and solar parks to power grids, metros, 5G towers, and data centres, depends on a single metal that runs everything: copper.

But what makes copper truly indispensable to India’s growth story?

Copper is indispensable because of its unique properties.

It is highly conductive, malleable, ductile, corrosion-resistant, and naturally antimicrobial.

These qualities make it essential for core sectors like energy, transport, electronics, and construction, forming the backbone of India’s electrification and infrastructure growth.

This importance is reflected in how copper is consumed across the economy.

Building and construction account for 25% of usage, infrastructure for 19%, industrial applications for 17%, transportation for 8%, consumer goods for 14%, and others for another 17%.

But this demand is not being matched by supply, either globally or in India.

Globally, copper demand stands at 27.5 million tonnes (MT) and supply at 22.58 MT in 2024.

India produces only 573 kilo tonnes of copper, while its demand has climbed to 1,878 kilo tonnes in FY25.

As a result, the country depends heavily on imports, sourcing more than half of the copper it needs from overseas.

In FY25, exports stood at $2.3 billion, while imports surged to $10.7 billion, making India a clear net importer.

Saudi Arabia, the US, and China received most of India’s exports, while Tanzania, Japan, and the UAE dominated imports.

The reasons for this dependence are long-standing, low exploration success, outdated mining technologies, exhausted mines, and limited private-sector participation.

This is why copper is increasingly being called India’s new oil.

National demand is rising at around 10% annually because copper is central to India’s net-zero goals, growing infrastructure, and rising consumption.

Renewable energy expansion is a key reason.

India is targeting 500 GW of clean energy, with 30-40 GW of solar capacity being added annually. And solar and wind plants rely heavily on copper for inverters, wiring, and transformers.

The EV revolution alone is also ramping up copper needs dramatically.

Electric vehicles use three to four times more copper than petrol cars, and EVs are expected to make up 30% of India’s passenger vehicle sales by FY30.

There is also a massive demand from the power grid.

New transmission corridors, smart metering, railway electrification, and expanding metro networks across cities all require copper-intensive systems.

8,830 circuit km of new transmission lines were added in FY25 alone, with ₹13 trillion planned for further expansion.

And India’s rapidly growing digital economy adds another layer.

The country’s data centre capacity is expected to hit 2,000-2,100 MW by 2027. And data centres, AI racks, high-density servers, and cooling systems all depend on high-purity copper.

Globally, the pressure on supply is rising too.

Copper demand is expected to reach 50 million tonnes by 2050.

India alone may need 3.24 million tonnes by 2030.

The International Energy Agency (IEA) has already warned of a 30% supply shortfall within the next decade.

Meeting global demand could require opening around 80 new copper mines and investing $250 billion by 2030, a scale the world is not yet prepared for.

In India, only a few major players anchor the copper ecosystem.

Hindustan Copper Ltd. remains the country’s only copper miner, with a capacity of 4 MTPA.

Among custom smelters, Hindalco’s Birla Copper operates at 5 lakh tonnes per year, Vedanta’s Sterlite Copper at 2.16 lakh tonnes, and Adani’s Kutch Copper has commissioned a Phase-I capacity of 5 lakh tonnes annually.

Together, they form the backbone of India’s supply, but demand is outpacing production by a wide margin.

To close India’s widening copper gap, the government is stepping in with targeted initiatives.

It is encouraging Indian companies to invest in or acquire overseas copper mining assets to secure long-term supply.

India is also strengthening strategic partnerships by working with the Mineral Security Partnership (MSP) for assured access to global copper resources.

On the domestic front, the government aims to boost capacity by supporting the addition of 1 MT of smelting and refining capacity every five years.

Copper powers India’s future. And as demand accelerates while supply tightens, copper is emerging as India’s most strategic metal for the decade ahead.

Sources:

Copper India
Copper Council
Financial Express
Business Standard
CSEP
Press Information Bureau
S&P Global
Institute of Energy Economics and Financial Analysis
ET Manufacturing
CSEP
UN Trade and Development
BSE