Indian Copper Producers Urge Govt to Retain Import Duties in FY28 Budget Amid Rising Imports

The Indian Primary Copper Producers Association (IPCPA) has urged the government to retain existing import duties on refined copper and copper products in the FY2027-28 Union Budget, citing rising imports, pressure on domestic producers and the risk of deterring planned investments.

In its pre-budget submission to the mines ministry, IPCPA sought retention of the 5% basic customs duty (BCD) on refined copper (HS 7403) and copper semis (HS 7407, 7408 and 7410), as well as the 7.5% duty on copper tubes and pipes (HS 7411). It called for retaining these rates “without reduction, exemption or fresh FTA concession,” according to news agency PTI.

The association also proposed raising the import duty on solar photovoltaic (PV) ribbons and busbars to 10% from 5%, citing competition from low-priced imports, particularly from China. India's annual manufacturing capacity for these products is estimated at 30,000 tonnes, compared with domestic demand of 25,000-28,000 tonnes. IPCPA said import competition has left domestic facilities underutilised.

IPCPA said the copper industry had invested more than ₹30,000 crore in smelting, refining and manufacturing facilities since 1996, with a further ₹35,000 crore in potential investments under consideration by 2030. Warning that duty cuts could undermine expansion plans, the association said, “Any signal of a cut would make it uncommittable.”

India's refined copper imports rose 77% to 495,000 tonnes in 2025 from 280,000 tonnes in 2020, according to IPCPA's submission. The association argued that lower duties would not necessarily reduce domestic copper prices, which are linked to international benchmarks, but could intensify import competition and weaken domestic producers' competitiveness.

The government's decision on the recommendations could affect copper trade flows, domestic smelting economics and investment across India's copper value chain. The proposed changes remain industry requests and have not been confirmed as government policy.