The International Copper Association India warns that meeting a 10 million tonne copper demand could cost $140 billion in imports. To secure supply, the industry body has proposed formalizing recycling and potentially restarting idle industrial assets like Vedanta’s Sterlite plant in Thoothukudi.
India is facing a significant challenge as it works to balance industrial growth with the need for raw materials. The International Copper Association India (ICAI) recently highlighted that the country’s copper demand is expected to climb to 10 million tonnes. If domestic production remains at current levels, the nation may need to rely heavily on imports, which the association estimates could cost up to $140 billion.
To address this, the ICAI has suggested that India treat copper as a strategic national reserve, similar to how the country manages gold stocks. Currently, India holds approximately 15 million tonnes of copper, which is considerably lower than the 120 million tonnes held by China or the 80 million tonnes in the European Union. The proposed solution involves building these reserves by focusing on what is called above-ground stocks, meaning the collection and reuse of metal rather than relying solely on underground mining.
The industry body suggests that formalizing the domestic recycling sector is a key step. By creating a structured framework to collect and process scrap metal instead of exporting it, India could lower material costs and become less dependent on global supply chains that are prone to price shocks. The ICAI also indicated that tax structures, such as the Goods and Services Tax, may need to be adjusted to better support a circular economy where recycled materials play a larger role.
Beyond recycling, the strategy includes a focus on industrial assets. A notable part of the proposal is the suggestion to utilize existing industrial infrastructure to speed up supply growth. The ICAI specifically pointed to the idle Sterlite Copper plant in Thoothukudi as a critical asset that could be considered for reactivation. This facility, owned by Vedanta, has remained non-operational for several years following environmental protests and legal proceedings. The association argues that prioritizing the use of existing plants could be more efficient than waiting for entirely new greenfield projects to come online.
The broader context here is that India’s copper demand is growing at a rate of over 9 percent annually, which is faster than the country's GDP growth. As industries such as power, infrastructure, and electric vehicles continue to expand, the pressure on raw material supply will likely intensify. Investors and market watchers may monitor how government policies evolve regarding the recycling industry and whether there will be any shift in the status of idle industrial assets. The effectiveness of this strategy will depend on the government's willingness to support recycling initiatives and resolve the complexities surrounding closed industrial facilities.