India will require roughly 500,000 tonnes of additional refined copper capacity every five years to keep pace with rising demand, according to International Copper Association India (ICA India) Managing Director Mayur Karmarkar. Speaking on the outlook for the ongoing financial year, Karmarkar said copper demand is likely to track overall GDP growth and the association is anticipating at least around 9 per cent growth over 2026. As reported by Business Standard, India's copper demand grew 9.3 per cent to 1,878 kilo tonnes (KT) in FY25 compared to 1,718 kilo tonnes in FY24, driven by robust economic progress and increasing adoption across critical sectors.
On the supply side, restarting the secondary smelter of Hindustan Copper and the new secondary smelter of Hindalco will add capacity of 100,000 tonnes, but this remains small against the total demand of about 1.8 million tonnes, according to Karmarkar. "It will help a bit, but the scale is relatively small," he added. Despite these investments, domestic refined copper production will remain insufficient to meet long-term demand requirements, as reported by Business Standard. Karmarkar emphasized that under the current growth scenario, supply will need to chase demand, underscoring the urgency for further capacity additions and investment in refining and smelting facilities.
India's continued emphasis on large-scale infrastructure projects, building construction, clean energy transition and emerging technologies has accelerated demand for key industrial materials, with copper emerging as a critical enabler across these sectors. The building construction and infrastructure segments remained primary growth drivers registering 11 per cent and 17 per cent year-on-year growth, respectively, as reported by Business Standard. The renewable energy sector achieved one of the highest annual capacity additions in FY25, while the consumer durables sector saw a double-digit percentage increase, driven by strong sales of air conditioners, fans, refrigerators and washing machines. Record copper prices are accelerating manufacturers' shift toward aluminium, driven by lower costs and lighter weight, with automakers expanding aluminium use as supply shortages and energy transition demand keep copper prices elevated.
Domestic cathode availability will further improve as smelter-refinery capacities expand, with Hindalco putting up an expansion plant and Kutch Copper's capacity coming on stream. These projects will make more cathode available in the country for domestic conversion, according to Karmarkar. The London Metal Exchange has approved Adani Copper for delivery against its contracts, enabling warrant issuance from July 10, with the facility having 500,000-tonne capacity produced by Adani Enterprises' Kutch Copper unit in Gujarat. This move may boost India's copper self-reliance and reduce import dependence amid steady domestic demand. Hindustan Copper is aiming for Navratna status, planning to triple ore output by 2029 and has initiated steps to achieve the prestigious designation, with strong financial performance including a near doubling of net profit and record revenue in FY26.
