India faces copper capacity crunch

India will need to add nearly 500,000 tonnes of refined copper capacity every five years to keep pace with rising demand, according to International Copper Association India, highlighting the growing supply challenge in one of the world’s fastest-expanding major economies.

ICA India Managing Director Mayur Karmarkar said copper demand is expected to broadly mirror economic growth, with consumption likely to rise by around 9% in 2026, driven by strong momentum across infrastructure, construction, clean energy and manufacturing.  Although domestic supply is set to improve, industry experts believe the pace remains insufficient to match long-term demand growth. 

Capacity additions from secondary smelters, including expansion by Hindustan Copper Ltd and a new facility by Hindalco Industries Ltd, are expected to add about 100,000 tonnes. However, this remains modest compared with India’s total copper demand of nearly 1.8 million tonnes. Karmarkar noted that additional cathode availability is expected as Hindalco expands capacity and Kutch Copper Ltd brings fresh capacity on stream. Even so, refined copper production is projected to trail demand without sustained investments in smelting and refining infrastructure.