India’s Copper Demand Grows 12% to 2,100 KT in FY26, Driven by Infrastructure and Automotive Sectors

India’s copper demand rose 12% to 2,100 KT in FY26, supported by infrastructure development, automotive growth, construction activity and investments linked to industrialisation and clean energy.

India’s Copper Demand Rises 12% to 2,100 KT in FY26

India’s copper consumption recorded strong growth in the financial year 2025–26 (FY26), increasing by 12% year-on-year to 2,100 kilotons (KT), compared with 1,878 KT in FY25. The figures were released by the International Copper Association India (ICA India).

The expansion outpaced India’s reported GDP growth of 7.7% during the same period. It also marked an acceleration from the 9.3% growth in copper demand recorded in FY25, reflecting stronger activity across infrastructure, automobiles, and building and construction.

Copper plays an important role in the economy because of its use in electrical systems, industrial equipment, vehicles and construction materials. The latest figures highlight the metal’s growing importance as India expands its infrastructure and industrial capabilities.

Infrastructure Emerges as the Biggest Driver of Copper Demand

Infrastructure development was the leading contributor to additional copper consumption during FY26. Demand from this segment increased by 29% compared with the previous financial year, while infrastructure accounted for 22% of India’s total domestic copper demand.

Copper is essential to infrastructure projects because it is widely used in power cables, transformers, motors and electrical installations. Its conductivity and durability make it a key material for electricity distribution and a range of industrial applications.

Continued investment in infrastructure and industrial development supported the sector’s strong performance. As projects expand across the country, demand for copper-based electrical equipment and related components is expected to remain an important factor in the domestic market.

Automotive Sector Records 14% Growth

The automotive industry also contributed to the increase in copper consumption, with demand rising by 14% in FY26.

The growth was supported by higher sales of passenger cars, commercial vehicles and tractors, following a comparatively sluggish period in FY25. Vehicles use copper in wiring systems, electrical components, motors and automotive harnesses.

As vehicle production and sales increase, the need for electrical and electronic components can also rise, supporting copper consumption throughout the automotive supply chain.

The sector’s performance highlights the connection between automobile demand and industrial materials consumption. Copper remains an important input for conventional vehicles as well as the wider transition towards more electrified transport technologies.

Building and Construction Accounts for Around One-Quarter of Demand

Building and construction represented approximately one-quarter of India’s total copper demand in FY26, recording annual growth of 9%.

Consumption was supported by urbanisation, commercial real estate development and premium residential projects. Copper is used in building wires, power cables, household electrical accessories and construction hardware.

The expansion of residential and commercial properties increases requirements for electrical installations, lighting systems and other building-related applications. As a result, construction activity remains a significant source of demand for copper across India.

The sector’s growth also demonstrates how changes in urban development and property investment can influence demand for industrial materials.

Data Centres Remain a Small Share of Copper Consumption

Despite growing attention towards digital infrastructure, data centre installations accounted for less than 1% of India’s total copper demand during FY26.

This indicates that data centres remained a relatively small contributor to overall consumption during the period covered by the ICA India data.

Copper is used in electrical distribution, power equipment, wiring and other systems that support data centre operations. However, the sector’s current share of national demand remains limited compared with established consumption drivers such as infrastructure, automotive manufacturing and construction.

Future demand will depend on the pace of data centre development and the associated requirements for power and electrical infrastructure.

Clean Energy and Industrialisation Expected to Support Future Demand

According to Mayur Karmarkar, Managing Director of ICA India, favourable government policies encouraging infrastructure investment, industrialisation and the clean energy transition are expected to support continued growth in copper demand.

Copper is an important material for electrical networks, industrial machinery and equipment used in energy-related applications. Investment in these areas can increase requirements for copper-containing components and systems.

The outlook will also depend on developments across major consuming industries, including construction, automotive manufacturing and infrastructure. Together, these sectors form a substantial part of the demand base for the metal.

About the International Copper Association India

The International Copper Association India is the Indian arm of the International Copper Association Ltd., a non-profit organisation established in 1959 under the Copper Alliance.

The organisation advocates the use of copper globally and works to highlight the metal’s applications across various industries. Its data on domestic consumption provides insight into changing demand patterns and the sectors contributing to India’s copper market.

Conclusion

India’s copper demand rose 12% to 2,100 KT in FY26, exceeding the country’s reported GDP growth and accelerating from the previous year. Infrastructure led the expansion, followed by automotive and building and construction. With continued investment in industrialisation, infrastructure and clean energy, these sectors are expected to remain important influences on India’s copper consumption.