India has announced a strategic plan to attract foreign companies to establish smelters and refineries within the country, according to a report by Reuters.
The plan aims to enhance the country’s copper production capabilities, aiming to reduce its dependency on imports by 2047.
This move comes with the incentive of state-owned Indian companies potentially investing in the mining operations of foreign companies.
According to a government policy document, India, currently the world’s second-largest importer of refined copper, may need to import between 91%-97% of its copper concentrates by 2047.
The country’s copper imports witnessed a 4% increase to 1.2 million tonnes (mt) in fiscal 2025.
The government document also stated that demand is projected to rise to between 3mt and 3.3mt by 2030, and between 8.9mt and 9.8mt by 2047.
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By GlobalDataIn addition, the document highlights the importance of supply diversification and foreign asset acquisitions, the report stated. It confirms India’s intention to encourage investments from international companies such as Codelco and BHP.
Furthermore, the document suggests that Indian companies should invest in overseas operations to ensure a stable supply chain and mitigate potential supply disruptions.
To support the establishment of new smelting and refining capacity, which could total 4mt-5mt, India plans to offer financial incentives. These include capital investment subsidies and customs duty exemptions on imported machinery.
The document indicated that although there is an estimated 12.2mt of copper resources, only 18% is considered accessible reserves.
To ensure a steady supply of copper concentrate, India is looking to incorporate a section dedicated to copper in its ongoing negotiations for free trade agreements with Chile and Peru.
The report also notes that India’s options for copper procurement have been further constrained due to tightening supplies from major suppliers such as Indonesia and Panama.
In a separate document, the Indian Government has detailed strategies to increase aluminium production, in anticipation of the domestic demand reaching 8.5mt by the fiscal year 2030.
Additionally, the country has initiated a significant exploration project in Zambia, sending a team of geologists to explore potential copper and cobalt deposits. The Zambian Government has allocated 9,000km² for India’s mineral exploration.
