Indian Copper Producers Seek Import Duty Retention in Union Budget 2027–28

The Indian Primary Copper Producers Association has requested the government to keep existing import tariffs on refined copper and related products intact in the upcoming Union Budget 2027–28. The trade body, representing manufacturers including Hindustan Copper Ltd (NSE:HINDCOPPER) and Hindalco Industries Limited (NSE:HINDALCO), warned that reducing basic customs duties below the current 5% to 7.5% range would spur cheaper foreign supply and put domestic operations at risk.

Rising foreign inflows and underutilized manufacturing plants are driving the industry's request. India saw refined copper imports jump 77% between 2020 and 2025, reaching 4.95 lakh tonnes. Local producers have invested over ₹30,000 crore in smelting and refining facilities since 1996 and are considering another ₹35,000 crore in expansions by 2030. The industry noted that lowering import duties would not decrease end-user prices because domestic rates track global benchmarks, but it would weaken the business case for local investments.

Additionally, the association recommended increasing import duties on solar PV ribbons and bus bars from 5% to 10% to curb heavy reliance on Chinese imports. Although domestic annual manufacturing capacity for these solar components stands at 30,000 tonnes against total demand of 25,000 to 28,000 tonnes, local production facilities remain underutilized. Investors will watch whether government policy choices in the Union Budget support local producers and protect planned capital investments.