India's Copper Demand Surges 9.3% in FY25 Driven by Infrastructure and Green Energy

India's demand for copper experienced a significant rise of 9.3% in FY25, reaching 1,878 kilo tonnes, up from 1,718 kilo tonnes in FY24, as per a report from the International Copper Association India (ICA India). This growth is a direct reflection of the country's strong economic performance and the increasing utilization of copper across critical sectors such as infrastructure development, building construction, clean energy initiatives, and emerging technologies.

Key sectors driving this demand included building construction, which saw an 11% year-on-year growth, and infrastructure projects, which recorded a robust 17% increase. The renewable energy sector also demonstrated high annual capacity additions. Furthermore, the consumer durables segment, comprising appliances like air conditioners, fans, refrigerators, and washing machines, experienced a substantial 19% surge in demand.

Mayur Karmarkar, Managing Director of ICA India, stated that the copper demand trajectory mirrors India's economic and industrial momentum, propelled by policies favoring renewable energy, sustainable mobility, and infrastructure. He also raised a critical point regarding the sufficiency of current growth rates to meet India's long-term 'Viksit Bharat @2047' agenda.

To ensure sustained growth and resilience, Karmarkar emphasized the necessity for India to proactively build functional copper reserves and strengthen its domestic supply chains. He urged accelerating copper adoption to bolster in-use functional reserves until India achieves developed economy status. Enhancing domestic copper fabrication capabilities and promoting import substitution strategies are deemed essential for supporting India's development ambitions and ensuring copper continues to power the nation's progress.

Impact This news indicates robust underlying economic activity and expansion in India's key industrial and manufacturing sectors. The surging demand for copper points to increased investment and production in infrastructure, construction, and renewable energy, potentially benefiting companies involved in the production, processing, and application of copper and related materials. The call for strengthening domestic supply chains could also stimulate domestic manufacturing and investment. Impact Rating: 7/10

Explanation of Terms: - **kilo tonnes (KT)**: A unit of mass equal to 1,000 metric tons. - **FY25**: Fiscal Year 2025, typically the period from April 1, 2024, to March 31, 2025. - **Infrastructure**: The fundamental facilities and systems, such as transportation networks, energy supplies, and communication systems, serving a country or region. - **Clean energy transition**: The global shift from fossil fuel-based energy systems to renewable and low-carbon energy sources. - **Consumer durables**: Household products that are long-lasting and are used repeatedly over time, such as appliances and electronics. - **Viksit Bharat @2047**: A vision and national objective for India to become a developed country by the year 2047, marking 100 years of its independence. - **Domestic supply chains**: The network of organizations, people, activities, and resources involved in moving a product or service from its origin to the end consumer within a country's borders. - **Import substitution**: An economic strategy that advocates for replacing foreign imports with domestically produced goods.