Copper Deficit Threatens India's Renewable Energy And Infrastructure Goals: CSEP Report

(MENAFN- KNN India) New Delhi, Aug 28 (KNN) India confronts the prospect of a substantial copper shortage as domestic production fails to match escalating demand driven by the nation's energy transition, infrastructure development, and industrial expansion, according to a recent analysis by the Centre for Social and Economic Progress (CSEP).

The research indicates that India's reliance on copper imports is expected to intensify significantly unless the country takes immediate action to bolster domestic production capabilities and recycling infrastructure.

With global copper demand anticipated to reach 50 million tonnes by 2050, the supply-demand imbalance presents mounting challenges for India's industrial and energy sectors.

Copper serves as a fundamental material in India's transition toward renewable energy, supporting electricity grid infrastructure, electric vehicle manufacturing, construction projects, and advanced industrial processes.

The CSEP report, entitled 'The Copper Report: Navigating Through the Demand and Supply Gap,' forecasts that domestic copper requirements in traditional sectors will climb to 3.24 million tonnes by fiscal year 2030, while energy transition applications alone will demand an additional 274,000 tonnes.

Despite possessing considerable copper reserves, India maintains its status as a net importer due to multiple structural challenges. The report identifies low exploration success rates, obsolete extraction technologies, and insufficient private sector involvement as primary obstacles to domestic production growth.

The situation deteriorated further following the closure of the Tuticorin smelter, which eliminated 40 percent of the country's cathode production capacity and intensified import dependency.

The global copper supply chain presents additional vulnerabilities for India's resource security. China dominates international copper processing, controlling over 44 percent of global capacity, creating potential supply disruptions through geopolitical tensions, export restrictions, and processing bottlenecks.

The report highlights declining ore grades worldwide and escalating processing costs as further risk factors. Indonesia's proposed prohibition on copper concentrate exports exemplifies the supply-side uncertainties facing international markets.

To address these challenges, the CSEP report advocates for comprehensive policy reforms to accelerate domestic exploration and extraction activities.

The analysis emphasizes India's substantial unexplored copper reserves and calls for regulatory changes designed to attract investment in mining and exploration operations while ensuring favorable returns for investors.

The report recommends strengthening midstream processing capabilities, diversifying revenue sources, and implementing international certification standards such as the Copper Mark to guarantee responsible sourcing practices.

These measures would enhance India's position in global copper supply chains while addressing environmental and social governance requirements.

Regarding downstream manufacturing, the analysis stresses the importance of expanding domestic cathode production capacity, reviewing existing trade agreements, and pursuing vertical integration strategies.

The development of formalized recycling infrastructure emerges as another critical priority, requiring enhanced regulation and safety standards to improve metal recovery from scrap materials and electronic waste.

The report concludes by emphasizing the necessity of proactive international engagement with copper-producing nations and strategic utilization of multilateral frameworks including the Mineral Security Partnership and Quad-ASEAN initiatives.

These diplomatic and economic partnerships will be essential for securing sustainable copper supply chains to support India's industrial growth and energy transition objectives.

(KNN Bureau)

MENAFN28082025000155011030ID1109989937