Securing India’s Copper Supply

The document analyzes India's high import dependence on copper and the global supply risks—including geopolitical instability in producer nations and declining ore grades—that threaten its economic and energy goals. It proposes a four-pronged strategy: diversifying primary supply through strategic partnerships, reforming trade duties to encourage domestic value addition, providing production-linked incentives for the smelting and fabrication industry, and rationalizing the GST on copper scrap to formalize the recycling sector.

• India faces a significant import dependence on copper, with over 50% of the primary and secondary raw materials needed for semi-finished and finished goods being imported.
• Copper demand in India is growing rapidly, driven by infrastructure and clean energy technologies; in FY 2023, demand from clean energy sectors grew by 35%.
• Global copper supply is expected to face a structural deficit in the coming decade, with projections suggesting a potential gap of 6.5 Mt by 2031 due to electrification.
• Geopolitical instability in key producer countries poses a risk to India's supply, as two-thirds of its copper ore and concentrate imports are exposed to countries with resource nationalism or political challenges, such as Indonesia and Panama.
• Domestic mining in India is limited, with the state-owned Hindustan Copper Limited holding over 80% of reserves, but domestic ore production met only 5% of the refined copper requirement in FY 2023.
• India's copper recycling is dominated by the informal sector and primarily involves direct remelting for semi-finished products rather than feeding into the smelting and refining process.
• India's trade balance for copper is heavily deficit-ridden, reaching USD 6.8 billion in FY 2024.
• The high Goods and Services Tax (GST) rate of 18% on copper scrap encourages tax evasion and non-compliance within the unorganized recycling sector.
• The document recommends diversifying primary supply by forging strategic partnerships with countries including Chile, Peru, Australia, the Democratic Republic of the Congo, and Zambia.
• Trade reforms are needed to address the 'inverted duty structure' caused by free trade agreements that allow copper semi-finished products to enter India at near-zero duties.

APA

Raizada, S., & Moerenhout, T. (2024). Securing India’s Copper Supply. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-07/securing-india-copper-supply.pdf

Chicago

Raizada, Swasti, and Tom Moerenhout. Securing India’s Copper Supply. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-07/securing-india-copper-supply.pdf.

Wikipedia

{{cite report |last1=Raizada |first1=Swasti |last2=Moerenhout |first2=Tom |title=Securing India’s Copper Supply |publisher=International Institute for Sustainable Development |date=June 2024 |url=https://www.iisd.org/system/files/2024-07/securing-india-copper-supply.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{raizada2024securing, author = {Raizada, Swasti and Moerenhout, Tom}, title = {{Securing India’s Copper Supply}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = jun, url = {https://www.iisd.org/system/files/2024-07/securing-india-copper-supply.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }