Booming Copper Demand, Broken Supply Chain

This shift has also been acknowledged at the highest policy levels. The Economic Survey 2025–26 notes that copper prices are surging due to rising demand from data centres and AI technologies amid tightening supplies. More significantly, it has characterized copper as a ‘strategic chokepoint’ in the transition to a low-carbon economy.

International organisations also echo this concern. The International Energy Agency has predicted that by 2050, the world’s demand for refined copper will be around 37 million tonnes. However, the current global refined copper supply is only about 26.5 million tonnes per annum. This widening difference between demand and supply needs to be met.

Copper will definitely be the engine for the growth story of India in the coming years. Demand indicators remain strong, powered by renewable energy expansion, and digital infrastructure. The country’s copper demand has grown by 9.3% in FY25, reaching 1,878 kilo tonnes, up from 1,718 kilo tonnes in FY24, as per the International Copper Association India.

However, supply tells a very different story. Supply has struggled to keep pace with steadily rising demand. The development of new copper mines is a long and expensive procedure that can take years or even decades to produce any kind of output. Moreover, the rate of growth of supply has been inadequate to manage the pressure generated by the growing demand.

This wide gap exposes a strategic vulnerability. As India aspires to secure its industrial future and reduce import dependence, it must strengthen its domestic copper ecosystem. One pragmatic step lies in reassessing facilities where operations were once halted, especially when global conditions have continued to evolve.

A prominent example is Vedanta’s copper smelting facility in Tuticorin, which was shut down in 2018 by the Tamil Nadu government following recommendations by the Tamil Nadu Pollution Control Board. The plant contributed nearly 36% to India’s copper output before its closure. Today, as copper shortages deepen and import dependence grows, the absence of this capacity is felt heavily.

The shutdown was because of alleged environmental concerns. This is precisely where the proposal for a green copper framework becomes central. A green restart offers a way to balance ecological responsibility with strategic necessity.

The proposed green copper restart plan aims to establish a transformative hybrid production system, which will integrate primary smelting (70%) with significant recycling of copper scrap and e-waste (30%). It will include emission control upgrades that will exceed current world-class standards. It seeks to transform the plant into a net water producer instead of a net water consumer. With careful evaluation, open monitoring, and close regulatory scrutiny, this framework can establish a model for sustainable copper production.

India has an opportunity to reclaim its position in the global supply value chain. Understanding the rapidly growing demand for copper and the comparative weakness of on the supply size, India can act decisively and seize the very opportunity. Resuming domestic operations will be about restarting an entire ecosystem that aims to secure industrial resilience and safeguard the environment alongside.

Copper has formed the foundation for the world's next phase of development. The decision India makes today will shape its future and determine its place on the world map.

The article is authored by Advika Dwivedi, a writer and Master of Business Laws graduate from the National Law School of India University