India used 2,100 kilotonnes of copper in the year to March 2026, 12% more than a year earlier, according to the International Copper Association India. Demand grew much faster than the economy, led by power infrastructure, cars and construction.
At a glance
- Copper demand in India grew faster in FY26 than in FY25, and well ahead of the 7.7% rise in GDP.
- A record 37 GW of new solar capacity made infrastructure the biggest source of extra demand.
- Scrap supplied 42% of India's copper, and 274 KT of that scrap was imported.
Background
Copper carries electricity better than any other affordable metal, so it goes into power cables, transformers, motors, building wiring and the wiring harnesses inside cars. The International Copper Association India is an industry body that promotes copper use and publishes annual demand estimates. India's financial year runs from April to March, so FY26 ended in March 2026.
What happened
India's copper demand rose 12% to 2,100 kilotonnes (KT) in the 2025-26 financial year, according to annual data from the International Copper Association India (ICA India), reported by BusinessLine on October 22. Growth picked up from 9.3% a year earlier, when demand was 1,878 KT. It also beat India's 7.7% GDP growth by a wide margin.
Infrastructure added the most new demand. The sector accounts for 22% of India's copper use and grew 29%, as the country added a record 37 gigawatts (GW) of solar capacity, double the previous year's figure. Wind additions rose 46% to 6 GW.
Where the extra copper went
Copper demand from the automotive sector rose 14%, helped by higher sales of passenger cars, commercial vehicles and tractors. Electric-vehicle sales grew 19%, taking EVs to 9% of vehicle sales and 37 KT of copper demand. ICA India says an EV uses four times as much copper as a petrol or diesel vehicle.
Building and construction, about a quarter of total demand, grew 9% on premium housing, commercial property and urbanisation. Data centres are still at an early stage in India and used less than 1% of the total, the association said.
What it means for India
Domestic production is growing but still falls short. Refined copper output rose 23% to 704 KT, and refined metal met 58% of demand, with scrap covering the other 42%.
India imported 274 KT of that scrap. ICA India managing director Mayur Karmarkar said this dependence will stay a challenge as other countries push recycling and try to keep scrap at home. He said that makes it "imperative to focus on additional smelting and refining capacities to meet future demand."
Our read
Outlook: bullish. Fast demand growth in a major consumer supports copper, though India's yearly data changes the global balance only gradually.
What to watch
- Whether solar and wind additions in FY27 keep pace with FY26's record, since infrastructure now leads demand growth.
- New smelting and refining capacity in India that could reduce the need for imported scrap.
- Any curbs on scrap exports by the countries that supply India.
For information only, not investment advice.
Copper price in India
metalscost.com India reference price as of 2026-11-07.
Detailed analysis
Demand Drivers
Solar and wind additions, higher vehicle sales and housing activity lifted demand 12%, well ahead of GDP growth.
Supply Drivers
Scrap covers 42% of supply, and imported scrap may get harder to buy as other countries keep it for recycling.
Refinery Output
Refined copper output rose 23% to 704 KT but met only 58% of demand.
What could lift prices
- Indian demand is growing faster than GDP, adding to global consumption.
- Renewable-energy and EV growth use more copper per unit than older technologies.
What could weigh on prices
- Data centres, a widely cited growth driver, still use less than 1% of Indian copper.
- Growth depends heavily on government infrastructure spending, which can slow.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | High | Demand rose 12% to 2,100 KT, while domestic refined output covers only 58% of it. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Copper Smelting & Refining | Positive | ICA India says more domestic smelting and refining capacity is needed to meet demand. |
| Solar Energy | Neutral | A record 37 GW of solar additions was the main reason infrastructure demand grew 29%. |
| Automotive | Neutral | Vehicle makers used 14% more copper, with EVs needing four times as much per vehicle. |
Who gains, who loses
- Indian copper smelters and refiners: Demand is growing faster than their 23% output growth can cover.
- Indian scrap-dependent fabricators: They rely on 274 KT of imported scrap that may become harder to buy.
Other ways this could play out
- If solar and wind additions slow from FY26's record, infrastructure demand growth could cool sharply.
- If exporting countries restrict scrap, India may need to import more refined copper instead.
Price risks
- India is still a small share of world copper use, so its demand alone rarely sets the price.
- Weaker demand in China could outweigh India's growth.
Historical comparison
- FY2025: Demand grew 9.3% to 1,878 KT, slower than FY26's 12%.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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