India's copper demand set to grow 7% on clean energy push: PHDCCI

Propelled by growing consumption in the renewable energy sector and infrastructure development, copper demand is likely to rise about 7 per cent in the country in the coming years, according to industry officials.

Policy initiatives such as construction of industrial corridors, housing for all Indians, national highway development projects, and energy transition projects are driving the demand for copper and it is anticipated to increase significantly, PHDCCI President Hemant Jain said. 

"Copper demand is expected to rise by 7 per cent in India in coming years. The copper sector is expected to attract private investment, supported by handholding by the government, especially through initiatives such as the PLI and Atmanirbhar Bharat," Jain said.

According to industry estimates, India's refined copper production is around 555,000 tonnes per year against domestic consumption of more than 750,000 tonnes. India imports around 500,000 tonnes of copper a year to meet local demand.

Industry experts have projected that copper demand might double by 2030, greatly enhancing the demand-supply gap and making India dependent and vulnerable to foreign nations.

Transition from fossil fuels to renewable energy will require huge amounts of copper to power the manufacturing of EVs, solar panels, wind turbines, EV batteries, etc, they said.

Domestic conglomerates like JSW Group, Aditya Birla Group, and the Adani Group have committed huge investments in copper production facilities to increase local production amid growing demand for the base metal.

"The criticality of copper as an integral part of the country's decarbonisation strategy is not lost to India Inc. Hence, it is making investments in this mineral, not just to bridge the demand-supply gap but also align its policies with those of the government," former steel secretary Aruna Sharma said.

Given its rising cost in recent times, investment in copper production and smelting makes it also a profitable business, Sharma added.

Industry experts also suggested the government look at leveraging the potential of the local plants that are lying unused. The closure of Vedanta's Sterlite plant at Tuticorin, Tamil Nadu, in 2018, wiped out more than 46 per cent of the country's production of the base metal, making India a net importer of refined copper.

Earlier, between 2013-14 and 2017-18, domestic production of refined copper was growing at a compound annual growth rate of 9.6 per cent and India was a net exporter of copper.