New Delhi. The uneasiness is clearly visible in the Indian copper industry these days. Big copper producers of the country say that cheap copper coming from abroad under free trade agreements is breaking the back of domestic companies. Indian Primary Copper Producers Association (IPCPA) has demanded immediate intervention of the government.
The industry says that in the last few years, huge investments have been made to increase copper production in India, so that the country does not depend on imports. But now foreign copper coming at zero or very low duty has reversed the entire mathematics. Domestic companies are not able to even cover the costs and the risk of production decreasing is increasing.
Why is the domestic market deteriorating due to cheap imports?
According to IPCPA, copper is reaching India without any customs duty under many FTAs. This is causing direct loss to the Indian smelting and refining industry. The organization says that under the goal of self-reliant India, more than Rs 20,000 crore has been invested in the last few years, but in the current situation this investment seems to be in danger.
Domestic companies have to bear higher costs due to electricity, raw materials and environmental regulations. At the same time, copper coming from outside is cheaper, due to which there is no equal competition in the market.
What are copper producers demanding from the government?
The industry body has demanded from the government that at least 3 percent safeguard duty should be imposed on some categories of copper. Along with this, quantity based control should also be done on imports coming from abroad, so that the domestic industry can get a chance to breathe. IPCPA clearly says that if timely steps are not taken, India’s copper industry may weaken and dependence on imports will increase further.
Why increased concern regarding India UAE agreement
The Comprehensive Economic Partnership Agreement between India and the United Arab Emirates has further increased the concern of the industry. Under this agreement, customs duty on copper wire rod has been reduced to 1 percent in 2025-26. After this, there is a plan to eliminate it completely by 2026-27. The industry says that if the duty is removed completely, there will be a flood of cheap imports and it will be difficult for Indian companies to survive in the market.
Why is copper so important for India
Copper is not just a metal, but is the backbone of many important sectors of the country. Copper is used extensively in electrical wires and cables, transformers, electronics, construction, solar power and electric vehicles. Emphasis on EV and renewable energy is increasing in India, hence the demand for copper will increase in the future. If domestic production weakens, India will be forced to import more, due to which the trade deficit may also increase.
Employment and investment will also be affected
People associated with the industry say that the impact of cheap imports will not be limited to companies only. If plants do not run at full capacity, employment will decrease and new investments may stop. This is the reason why copper producers are demanding the government to take a decision soon.
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