India is home to copper mining players, including Hindustan Copper Ltd, but the country remains a net importer of copper. Despite rich reserves, domestic production has struggled to keep pace with rising demand, which stems from the country’s rapid industrialization and increasing focus on infrastructure development. India’s per capita copper consumption is currently lower than the global average, but with continued growth in sectors like electricals, automotive, and construction, demand is expected to rise sharply.
However, the Indian copper mining sector faces significant challenges. Regulatory delays, environmental concerns, and inadequate infrastructure continue to hinder mining expansion. The closure of the Sterlite Copper plant in Tamil Nadu, which accounted for a significant portion of India’s copper production, also heightened the reliance on imports, mainly from countries like Japan, Chile, and the Democratic Republic of Congo. This has left the domestic market vulnerable to fluctuations in global copper prices and geopolitical shifts.
Copper’s role in renewable energy sector is crucial, given its high recyclability and efficiency in energy transfer. As India sets ambitious targets for solar energy generation, the demand for copper in solar panels, wind turbines, and electric grids will grow significantly.
Globally, the focus on sustainability has placed copper at the center of the energy transition. The metal is essential in the production of EVsand battery technologies, which are vital for reducing carbon emissions and promoting clean energy. India’s dependency on copper imports underscores the importance of FTAs in shaping the copper market. FTAs with countries like Chile, Japan, and ASEAN have helped lower import tariffs, making copper more accessible to Indian manufacturers. However, while these agreements have increased availability, they have also intensified competition for domestic producers, which now face cheaper imported copper.
The strategic use of FTAs can create both challenges and opportunities. On one hand, they provide Indian manufacturers with the raw materials needed for the growing EV and renewable energy sectors. On the other, they make it harder for local mining companies to thrive without significant policy support and investment in domestic production.
Looking forward, the copper industry will need to balance the increasing demand with sustainable practices. Investment in advanced mining technologies, such as deep-sea mining and recycling, could help reduce the environmental impact while meeting the needs of various industries. In India, strengthening domestic production through policy reforms and public-private partnerships will be essential to reducing import dependency and ensuring a stable copper supply.
As both India and the world transition towards a greener economy, copper will remain at the forefront of this change, driving innovation and growth in energy, transportation, and infrastructure.