India is embarking on a strategic initiative to attract foreign copper processing firms while simultaneously gaining access to critical overseas mining operations. A government document reviewed by Reuters reveals that India plans to allow foreign companies to build smelters and refineries in the country, in return for joint investments with Indian state-run firms in international copper mining ventures. This move is part of a broader strategy to address India’s growing dependence on copper imports and to secure long-term supplies of the essential metal.

India’s copper demand continues to rise, with the country importing 1.2 million tonnes of copper in the financial year 2024–25, marking a 4 percent year-on-year increase. However, domestic copper production remains limited, with only about 573,000 tonnes of refined copper produced locally. Consequently, India is heavily reliant on imported copper concentrate, and projections show this dependency could grow to 91 to 97 percent by 2047.

To mitigate risks associated with this reliance, the government is negotiating trade deals that would secure access to copper supplies. Notably, India is seeking to include a dedicated copper chapter in free trade agreements with Chile and Peru, two of the world’s leading copper producers. This initiative would help India secure a stable supply of copper concentrate, vital for its growing industrial and clean energy sectors.

India is also strengthening ties with major mining companies such as Chile’s state-owned Codelco and Australia’s BHP. Discussions are ongoing about setting up processing plants in India, with Indian state-run enterprises gaining equity in their overseas mining operations. These partnerships would enable India to process raw materials locally while gaining a foothold in some of the world’s richest copper mining regions.

The Indian government, through agencies like Khanij Bidesh India Ltd (KABIL), is actively scouting for mining assets in countries such as Mongolia, Zambia, the Democratic Republic of Congo, Chile, Peru, and Australia. Recent developments include sending geological teams to Zambia to explore copper and cobalt reserves over a 9,000 square kilometre area, with potential for future joint ventures.

India’s state-owned NMDC Ltd has opened a new office in Dubai to facilitate the acquisition of critical mineral assets globally. This expansion underscores India’s commitment to strengthening its global resource base, particularly in Africa and South America.

Domestically, industrial giants like JSW Group and Adani Group are investing heavily in copper processing infrastructure. JSW is planning a 500,000-tonne smelter in Odisha, with operations expected to begin by 2028, alongside mining investments in Jharkhand. Adani has already begun operations at a new copper refinery in Gujarat, which will significantly boost India’s refining capacity.

Meanwhile, the Indian government is defending its quality control measures on copper imports. In response to legal challenges, authorities stated that ten overseas producers, mostly from Japan, have already complied with the new regulations, ensuring that the import quality does not compromise domestic industry or consumer safety.

India’s copper strategy is also being shaped by geopolitical concerns, particularly growing resource nationalism in countries like Indonesia and Panama, which have tightened controls on metal exports. As a countermeasure, India is aiming to secure long-term international mining partnerships and reduce its exposure to global supply shocks.

Prime Minister Narendra Modi’s administration is also expanding diplomatic efforts in Latin America, reopening embassies in Chile, Argentina, and Bolivia. These efforts support broader mineral acquisition strategies, including deals for both copper and lithium, positioning India as a key player in the global race for critical minerals.

This multi-layered approach—ranging from foreign partnerships and trade agreements to domestic infrastructure and regulatory control—aims to transform India into a hub for copper processing while ensuring long-term access to the raw materials essential for its industrial and green energy ambitions.