India's copper demand has experienced a 13% growth in FY24, reaching a total of 1,700 kilotons (kt), according to the International Copper Association India (ICAI). This significant rise is primarily attributed to the rapid growth in infrastructure development and building construction, which traditionally make up 43% of the country’s total copper demand. The construction and infrastructure sectors are also crucial contributors to India’s economy, accounting for 11% of the nation’s GDP.

Copper Demand Trends Post-Pandemic:

Between FY21 and FY24, copper demand in India grew at an impressive average annual rate of 21%. This robust growth is reflective of the accelerated pace of infrastructure and construction development in India post-pandemic. As both sectors expand further, copper demand is projected to rise even more, aligning with India’s economic growth.

Infrastructure and Construction Sector Growth:

In the first half of FY25, the infrastructure sector saw a growth of 9.1%, while the construction sector expanded by 6.8%. These sectors are anticipated to maintain their growth trajectory, which will continue to drive copper demand in the coming years. The infrastructure boom, which includes roads, bridges, and public amenities, along with rapid urbanization, is heavily reliant on copper for electrical wiring, plumbing, and industrial machinery.

Sectoral Contributions to Copper Demand:

• Building Construction: This sector remains a dominant consumer of copper in India. As the country progresses with large-scale urban development and residential projects, copper's role in wiring, pipes, and building materials grows significantly.

• Transportation: Increased demand for electric vehicles (EVs) and advancements in transportation infrastructure are also contributing to copper consumption. Copper is a key component in EV batteries and electrical systems, making it crucial as India looks to expand its transportation network.

• Industrial Goods: With India’s growing industrial production, especially in sectors like power, manufacturing, and automation, copper usage in industrial goods has surged. This sector continues to experience double-digit growth, further bolstering demand for copper.

GDP Growth and Copper Demand:

The rising demand for copper is directly tied to India’s strong GDP growth, which has been fueled by substantial investments from both public and private sectors. The demand also aligns with increased consumer spending, which has accelerated economic activities, particularly in construction and industrial sectors. As India advances its infrastructure projects, copper consumption is likely to increase further, mirroring the expansion of the nation’s economic and industrial landscape.

Outlook for Copper Demand:

According to Mr. Mayur Karmarkar, Managing Director of the International Copper Association India, the demand for copper is expected to remain strong, particularly in sectors showing double-digit growth. This trend suggests that India’s copper consumption will continue to rise in tandem with its economic expansion.

Given the pivotal role copper plays in critical industries such as construction, electric vehicles, power, and transportation, it is clear that India’s copper demand will be a significant factor in the nation’s growth story over the coming years.

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