India copper demand grows 12% to 2,100 kilotonnes in FY26 on infrastructure push

What drove India’s copper demand surge in FY26

India’s total copper consumption expanded by 12 per cent year-on-year to reach 2,100 kilotonnes in the 2025–26 financial year, driven by the government's sustained thrust on national infrastructure development and accelerating industrial activity.

Data released on Thursday by the International Copper Association India (ICA India) showed that consumption grew from 1,878 kilotonnes in FY25. The 12 per cent growth rate significantly outstripped India’s overall GDP growth rate of 7.7 per cent for the same period, marking a clear acceleration from the 9.3 per cent expansion recorded in the previous fiscal year.

The surge in demand reflects broad-based economic momentum across the country, with core productive sectors expanding rapidly to support industrialisation, renewable energy integration, and urban growth.

Which sectors consumed the most copper

Public infrastructure development emerged as the single largest engine of new demand during the year. Copper usage in infrastructure projects surged 29 per cent year-on-year, bringing its overall share to 22 per cent of total national consumption. The increase underscores the impact of steady capital investment in power distribution grids, transport networks, and electrification projects.

The building and construction sector maintained its position as the largest overall consumer of copper, accounting for roughly a quarter of national demand. Driven by ongoing urbanisation, commercial developments, and high-value residential projects, copper consumption in this segment expanded by 9 per cent year-on-year.

Meanwhile, the automotive industry experienced a strong rebound, growing by 14 per cent after a quieter performance in FY25. Higher sales of passenger vehicles, commercial fleets, and agricultural tractors powered the recovery, requiring increased volumes of copper wiring harnesses and electronic components.

How policy initiatives are accelerating consumption

The rising appetite for refined copper highlights the pivotal role of targeted state policy in building robust national supply chains and facilitating the clean energy transition. Copper remains essential across key electrical components, including transformers, motors, power cables, and industrial machinery.

Mayur Karmarkar, Managing Director of ICA India, said that the country's economic momentum directly reflects in the growing demand for industrial metals. Favourable central policies promoting sustained capital investment in infrastructure, manufacturing capacity, and clean energy will continue to sustain copper demand in the coming years.

While advanced digital facilities such as data centres currently account for under 1 per cent of total national copper usage, ongoing expansion in tech hubs and digital infrastructure is set to create additional long-term demand channels.