Mumbai, Oct. 28 -- India's copper demand rose 12 per cent to 2,100 kilotonnes (kt) in FY26, driven by infrastructure, automotive and building and construction activity, according to the Annual Copper Demand Data for FY2026 released by the International Copper Association India (ICA India). Demand growth accelerated from 9.3 per cent in the previous fiscal, when consumption stood at 1,878 kt, and exceeded India's 7.7 per cent GDP growth during the period.

Copper is used extensively in wires and cables, transformers, motors, automotive harnesses and other electrical and industrial products. ICA India Managing Director Mayur Karmarkar attributed the increase to stronger economic activity and said policies supporting infrastructure investment, industrialisation and the clean energy transition would continue to support demand.

Infrastructure was the largest source of incremental demand, accounting for 22 per cent of total consumption and recording 29 per cent year-on-year growth. India added a record 37 GW of solar capacity during FY26, double the capacity added in FY25, while wind capacity additions increased 46 per cent to 6 GW. The growth was linked to the country's renewable energy, grid development and net-zero objectives.

Automotive copper demand increased 14 per cent as passenger vehicle, commercial vehicle and tractor sales improved after subdued growth in FY25. Electric vehicle sales rose 19 per cent, led mainly by electric two-wheelers and four-wheelers. EV penetration reached 9 per cent, generating copper demand of 37 kt, with EVs requiring four times as much copper as internal-combustion-engine vehicles.

Building and construction, which contributes about one-fourth of national copper demand, grew 9 per cent year-on-year. Demand was supported by premium housing, commercial real estate, urbanisation, building wire, power cables and construction hardware, while data centres contributed less than 1 per cent. Domestic refined copper production reached 704 kt, up 23 per cent, meeting 58 per cent of demand; scrap supplied the remaining 42 per cent. Imported scrap totalled 274 kt, highlighting the need for additional domestic smelting and refining capacity.

Published by HT Digital Content Services with permission from Construction World.