The US's recent decision to impose a 50% tariff on copper imports is expected to have minimal direct impact on India's copper exports, but it may contribute to uncertainty in India's electronics manufacturing and semiconductor supply chains.
India is largely a net importer of copper, bringing in about US$10.65 billion worth of copper in fiscal year 2024–25, with around 95% of its copper concentrate needs met through imports, primarily from Indonesia and Chile. Domestic copper exploration has remained sluggish in recent years, making India heavily dependent on international supply chains.
According to NDTV and Business Standard, India exported approximately US$2 billion worth of copper and copper products globally during the same period, of which just US$360 million—about 17%—went to the US. That makes the US only the third-largest market for Indian copper exports, behind Saudi Arabia and China. Given this relatively low exposure, analysts say the impact of the new tariff on Indian copper exporters will be limited.
Therefore, any decline in US demand is likely to be offset by strong growth in India's domestic consumption, driven by renewable energy projects, electric vehicles, and infrastructure development.
However, according to the Economic Times, industry observers caution that the US tariffs could have indirect consequences for India's ambitions in electronics manufacturing services (EMS) and the semiconductor industry. Copper is essential in printed circuit boards, wiring, and semiconductor packaging. India relies on imports of high-purity copper, often from China, for these applications. Any ripple effects on global supply chains could result in cost escalations or delays for critical materials.
India's Mines Minister G. Kishan Reddy has acknowledged the concerns, stating that the government will address the issue during ongoing trade discussions. Reuters reported that an Indian trade delegation has already arrived in Washington, and chief negotiator Rajesh Agrawal is expected to join talks this week.
Article edited by Jack Wu
