India’s copper industry has sought immediate government intervention in restricting cheap copper imports under numerous free trade agreements (FTAs) that are proving to be “severely damaging” to Indian manufacturing.
According to a statement issued by the Indian Primary Copper Producers Association (IPCPA), despite India’s domestic smelting and downstream manufacturing sector having invested over ₹20,000 crore in recent years to achieve self-sufficiency, a surge in zero-duty copper imports is hampering it.
“Zero-duty imports from FTA partners are severely damaging Indian smelting and refining,” the ICPA said.
It has demanded a 3 per cent safeguard duty to be imposed on copper imports of certain categories, irrespective of the FTA (free trade agreement) status, and also urged the government to place quantitative restrictions on inbound shipments from overseas.
It also raised concerns about the India-UAE Comprehensive Economic Partnership Agreement (CEPA), under which customs duties on copper wire rods have fallen to one per cent in FY26, and the levy is expected to be fully eliminated by FY27.
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The problem worsened due to an inflated Tariff Rate Quota (TRQ) of 85,000 tonnes per annum (KTPA) -- far above the intended 29 KTPA -- triggering a 340 per cent surge in imports from the UAE between FY22 and FY26, the industry body said, adding that the tariff rate quota should be corrected and capped at its original level.
The tariff rate quota mechanism allows certain quantity of imports at a reduced or zero duty.
The IPCPA further said that the India-ASEAN CEPA includes a cumulative value-addition rule that permits Indonesian copper cathodes -- after significant processing in Indonesia -- to receive only minimal further treatment in Thailand, Malaysia, or Vietnam before entering India duty-free. From 2020 to 2024, this provision drove a 66 per cent surge in copper wire imports and a 103 per cent increase in copper tube imports.
Meanwhile, Indonesia sharply expanded its smelting capacity, bolstering its export strength. Chinese investments in ASEAN copper operations have further skewed competition, leading Indian producers to call for adding copper wires, tubes, and foils to the exclusion list amid the current FTA review.
The global copper smelting industry is under severe economic stress. One of the sector's primary revenue streams -- TC/RC (Treatment and Refining Charges) -- has collapsed by 80 per cent. For 2026, TC/RC levels are projected to fall to zero, making smelting and refining operations increasingly unviable for Indian producers.
This challenge is compounded by zero-duty imports of copper cathodes, rods, wires, and tubes from the UAE, ASEAN, and Japan, which are entering India under various FTAs and displacing domestic production.
"Therefore, the copper industry seeks urgent government intervention to address FTA-related issues through... imposing an additional three per cent duty on imports of (copper cathode, rod, wire and tube), implementing quantitative restrictions on imports to safeguard the domestic copper industry," it said.
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