India’s Copper Demand: A Surge Fueled by Clean Energy and Infrastructure
Growing Copper Consumption in Renewable Energy and Infrastructure
India’s copper demand is set to increase by around 7% in the coming years, thanks to the rising consumption in the renewable energy sector and infrastructure development. Policy initiatives like industrial corridor construction, the “Housing for All” program, national highway development projects, and energy transition efforts are driving this growing demand for copper.
Investment Trends and Demand-Supply Gap
Experts predict that copper demand could double by 2030, significantly expanding the demand-supply gap and increasing India’s reliance on foreign sources. The shift from fossil fuels to renewable energy will require large amounts of copper for manufacturing electric vehicles (EVs), solar panels, wind turbines, and EV batteries.
- Domestic conglomerates such as JSW Group, Aditya Birla Group, and Adani Group have committed significant investments in copper production facilities to enhance local output.
- With copper prices on the rise, investments in copper production and smelting are seen as lucrative opportunities.
India’s Copper Production and Imports
India’s annual refined copper production stands at approximately 555,000 tonnes, while domestic consumption surpasses 750,000 tonnes. To cover this gap, India imports about 500,000 tonnes of copper each year.
Utilizing Local Plants and Enhancing Production
Industry experts have encouraged the government to utilize the potential of local plants that remain underutilized. The closure of Vedanta’s Sterlite plant in Tuticorin, Tamil Nadu, in 2018, removed more than 46% of the country’s copper production capacity, turning India into a net importer of refined copper.
Between 2013-14 and 2017-18, domestic refined copper production was growing at a compound annual growth rate (CAGR) of 9.6%, with India even being a net exporter during that period.
