India's primary copper producers have asked the government not to cut import duties on refined copper in the next Union Budget, warning that cheaper imports could hurt plans to invest about ₹35,000 crore in new capacity by 2030.
At a glance
- Refined copper imports rose 77% from 2.80 lakh tonnes in 2020 to 4.95 lakh tonnes in 2025, the association says.
- It wants the duty on solar PV ribbons and bus bars doubled from 5% to 10%.
- The industry has invested over ₹30,000 crore in smelting, refining and manufacturing since 1996.
Background
The Indian Primary Copper Producers Association (IPCPA) represents Hindustan Copper, Hindalco Industries, Kutch Copper and Vedanta, the companies that smelt and refine copper in India. Before each Union Budget, industry bodies send customs duty proposals to ministries. Basic customs duty is the main tax on imported goods.
What the industry asked for
IPCPA made its request in a pre-budget submission to the mines ministry, BusinessLine reported. It asked that the existing basic customs duty of 5% to 7.5% on refined copper and several copper products be kept with no cut or exemption. That includes the 5% duty on refined copper and 7.5% on copper tubes and pipes.
It also wants the duty on solar PV ribbons and bus bars, used to make solar modules, raised from 5% to 10%. And it asked that these products get no fresh concessions under free trade agreements.
Why producers are worried
Producers say imports are rising while domestic plants sit underused. Refined copper imports rose 77% between 2020 and 2025, to 4.95 lakh tonnes, according to the submission.
For solar ribbons and bus bars, India has about 30,000 tonnes a year of capacity against demand of 25,000 to 28,000 tonnes. Plants still run below capacity because of imports, particularly from China, the association said.
What it means
IPCPA argues that a duty cut would not make copper cheaper for Indian consumers, because domestic prices track international benchmarks. Instead, it says, imported metal would become more competitive and the case for new domestic plants would weaken.
The stakes are large. The industry says it has invested over ₹30,000 crore since 1996 and is considering about ₹35,000 crore more in capacity by 2030. The 2027-28 Budget will show whether the government keeps the current duty structure.
Our read
Outlook: neutral. Indian duty decisions affect domestic producers' margins more than the global copper price, which is set on the LME.
What to watch
- Customs duty changes on copper in the Union Budget 2027-28.
- Monthly refined copper import figures.
For information only, not investment advice.
Copper price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Supply Drivers
Refined copper imports rose 77% between 2020 and 2025, according to IPCPA.
Government Policies
The request is part of pre-budget consultations for the 2027-28 Union Budget.
Trade Tariffs
Producers want the 5% to 7.5% duties kept and the duty on solar ribbons raised to 10%.
What could lift prices
- Strong Indian demand for copper in power and solar keeps imports rising.
- Planned ₹35,000 crore of new capacity points to long-term demand growth.
What could weigh on prices
- A duty cut would make imported copper cheaper for Indian buyers.
- Underused domestic capacity shows supply is not short.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | High | Duty decisions shape the outlook for its domestic copper smelters. |
| China | Medium | Imports of solar ribbons and bus bars, particularly from China, compete with Indian plants. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Copper Smelting & Refining | Neutral | Producers say current duties protect planned investments. |
| Solar Panel Manufacturing | Negative | A higher duty on ribbons and bus bars could raise input costs for module makers. |
Who gains, who loses
- Indian copper producers: Kept duties would protect them from cheaper imports.
- Solar module makers: A higher ribbon duty could raise their costs.
Other ways this could play out
- If the Budget keeps duties unchanged, planned smelter investments are more likely to go ahead.
- If duties are cut, imports could rise further and domestic plants could stay underused.
Price risks
- Free trade agreements could still lower duties on some imports.
- Global copper prices, not duties, mainly drive Indian copper rates.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
India
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