India’s domestic industries face the prospect of a prolonged copper shortage as new quality control norms come into force. With insufficient local production, the country relies on imports to meet 30-40% of its refined copper requirements, a key raw material for manufacturing electrical wires, cables, and other critical products.
In the financial year 2023-24, India imported refined copper worth ₹16,500 crore, with Japan being a major supplier. The growing dependence on imports highlights the domestic production gap, which has been further widened by the introduction of stringent quality standards aimed at ensuring safety and reliability in end-use industries.
The quality norms, though beneficial for improving product standards, have inadvertently slowed the supply chain. Copper imports now require additional certifications and inspections, causing delays and raising costs for industries reliant on this essential material. Manufacturers fear that the shortage could disrupt production schedules and increase operational expenses.
Industry experts suggest that ramping up domestic copper production could mitigate the situation in the long term, but this will require significant investment and time. In the interim, businesses are calling for measures to streamline import procedures under the new regulations to avoid severe supply chain disruptions.
The looming shortage comes at a time when demand for copper is on the rise due to expanding infrastructure projects and the transition to renewable energy systems, both of which heavily depend on copper for wiring and electrical components. Addressing the supply gap is crucial to ensure the continued growth and competitiveness of India’s industrial sector.
