India’s Copper Demand Rises 12% in FY26 to 2,100 KT Driven by Infrastructure and EV Growth

India’s copper demand accelerated to 12 per cent in the 2025-26 fiscal year, reaching 2,100 kilotonne (KT), according to the Annual Copper Demand Data for FY2026 released by the International Copper Association India (ICA India). This growth rate was higher than the 9.3 per cent recorded in the previous fiscal year when demand stood at 1,878 KT, significantly outpacing the country’s 7.7 per cent GDP growth during the period.

Copper continued to play a central role in infrastructure, automotive, and building and construction sectors through its application in wires and cables, transformers, motors, and automotive harnesses. Mayur Karmarkar, Managing Director of International Copper Association India, noted that the rising demand reflects India's overall economic activity momentum.

Infrastructure emerged as the largest driver of incremental demand in FY2026, growing 29 per cent year-on-year and accounting for 22 per cent of the country's total copper demand. India added a record 37 GW of solar capacity during the year, which is double the capacity added in FY2025. Wind capacity additions also rose 46 per cent to 6 GW, supporting the country's net-zero vision and renewable energy scaling.

The automotive sector rebounded following subdued growth in FY2025, recording a 14 per cent rise in copper demand supported by higher sales of passenger vehicles, commercial vehicles, and tractors. Electric vehicle (EV) sales increased by 19 per cent, led mainly by electric two-wheelers and four-wheelers. Overall EV penetration reached 9 per cent in FY26, generating a copper demand of 37 KT, noting that EVs require four times more copper than internal combustion engine vehicles.

The building and construction sector, contributing about one-fourth of the total demand, grew 9 per cent year-on-year. This was supported by premium housing projects, commercial real estate activity, and urbanisation, while data centre installations contributed less than 1 per cent to total demand.

On the supply side, domestic refined copper production reached 704 KT in FY26, marking a 23 per cent year-on-year growth. Refined copper supply contributed 58 per cent of total demand, with the remaining 42 per cent met through the scrap route. ICA India highlighted that dependency on imported scrap, amounting to 274 KT, presents an ongoing challenge due to global circular economy policies, emphasizing the need for additional smelting and refining capacities.

"The 12 percent growth in India's copper demand highlights the robust momentum across core industrial sectors like infrastructure and manufacturing. With renewable energy expansion and electric vehicle adoption accelerating, the demand for raw materials and critical components is set to reshape traditional supply chains. For businesses and entrepreneurs operating in the hardware, EV ecosystem, and clean energy sectors, this trend signals significant market opportunities while also underlining the strategic need to address domestic smelting and recycling capabilities." — Dr. Shishir Gupta, Founder & CEO, StartupLanes