Copper has historically been an essential industrial metal, but in 2025–26 its strategic importance in India has grown significantly as the economy transitions toward electrification, renewable energy deployment, and advanced infrastructure development. Against this backdrop, copper demand in India has risen sharply, reflecting structural shifts across multiple sectors.
Recent Demand Growth: Evidence From FY25
According to the International Copper Association India (ICA India), India’s copper demand increased 9.3% year-on-year in FY25, reaching 1,878 kilotonnes. This growth was driven by expansion in infrastructure, construction, renewable energy, and electric mobility.
Key contributors included:
- Building construction – up 11%
- Infrastructure sector – up 17%
- Renewable energy installations – among highest growth segments
- Electric vehicles (EVs) – EVs and related mobility increased consumption in the automotive segment by 16% compared with overall automotive demand growth of 5% in FY25 .
Wires, cables, and transformers together accounted for 43% of total copper consumption, underscoring copper’s role in energy distribution and electrification.
Electrification and EVs as Demand Multiplier
Another major structural driver of copper demand is the electric mobility drive in India. With the government’s vision of achieving around 30% of EV penetration by 2030, copper demand is increasing because of the considerably higher copper content of EVs compared to conventional IC engine vehicles.
In a recent study, it was pointed out that:
- Electric vehicles use three to four times more copper than conventional vehicles because of copper's use in motors, batteries, and charging infrastructure.
This relative increase makes copper an integral part of the automotive value chain, beyond its status as a commodity metal.
Renewable Energy and Grid Expansion
Another significant structural factor that is boosting demand for copper is the deployment of renewable forms of energy in India, including solar power and wind power. It is known that modern forms of renewable power, including solar power and wind power, require more copper than traditional forms of power, including thermal power.
Although exact megawatt-scale deployment of solar power and wind power plants in India may not be disclosed in the media, global research indicates that solar power plants and wind power plants require more copper than thermal power plants. This general trend indicates the link between renewable power in India and copper demand.
Furthermore, according to ICA India, renewable power capacity additions in FY25 contributed significantly to the growth of demand for copper.
Supply Constraints and Import Dependence
Despite strong demand growth, India’s domestic copper production capacity remains low. Repeated reports indicate that India’s requirement of copper is met by importing 60% of the copper required by the country, while domestic copper production remains at an average of 0.5 to 0.6 million tonnes.
This is due to historical capacity issues, including the closure of previous smelting capacities that have not been replaced.
Large players and new entrants in the industry are investing in increasing capacities:
- Large smelter capacities have been announced by large conglomerates, aiming to increase refined copper capacities to levels closer to those of 2017 by mid-2020s.
Even with these capacity additions, India will continue to remain a net importer of copper.
Global Market Context and Price Trends
Copper markets in late 2025 and early 2026 have been characterized by supply chain tightness due to supply chain pressures and high levels of demand from electrification industries:
- London Metal Exchange (LME) copper prices climbed above $11,000 per tonne in 2025 and are projected to remain strong into 2026, reflecting broader market tightness and structural demand growth.
Further, forecasts indicate that an increase in demand from electrification, digitalization, and renewable energy may result in an increase in copper demand relative to supply in the coming years.
Strategic Implications for India’s Industrial Policy
Copper is increasingly being perceived as an important mineral resource in the context of Indian policy discourse. There is a realization of the importance of copper and its potential impact on national security and long-term industrial competitiveness. There is a pressing need for:
- Acceleration of exploration and auctioning of new copper blocks.
- Incentivizing smelters and refining infrastructure.
Copper is an important mineral resource for the renewable energy and electricity sectors. There is pressure on the government to ensure that copper supplies do not pose a hindrance to strategic national goals of Atmanirbhar Bharat and decarbonization.
Another dimension of copper is its increasing role in recycling. In FY25, secondary copper supplies (i.e., recycled copper) constituted a larger proportion of total copper demand than in previous years. Secondary copper supplies constituted 42% of total copper demand in FY25, compared with 38.4% in FY24.
Although copper recycling is still not sufficient to offset import dependence, it is increasingly playing an important role in reducing dependence on copper ore imports.
Conclusion: Structural Demand Amid Supply Vulnerabilities
The copper industry in India for 2025-26 represents a microcosm of how traditional industrial metals are being redefined as a result of electrification demands. The growth in copper demand can be characterized as structural as opposed to cyclical, as highlighted by independent industry reporting and data.
Supply-side issues represent a range of strategic challenges that are set to shape industrial policies, investments, and trade strategies. In an environment where copper markets globally are under strain and India's own copper production capacity is limited, its ability to balance its copper supply with its electrification and climate ambitions represents one of the biggest challenges that India is set to face.
Sources
India’s Copper Demand Rises 9.3 Percent in FY25; ICA Calls for Strategic Reserves Planning
Can India secure enough copper to power 30 million EVs?
After cement, Adani flexes muscles in another new sector
(IRuniverse Rohini Basunde)
