By Divya Dhingra
Copper is quietly becoming the world’s most strategic metal and the race to secure it is already reshaping industrial geopolitics. Nations that control copper refining today will command the clean-energy economies of tomorrow. Yet, even as global demand surges, India once a robust exporter of refined copper, has quietly slipped into the ranks of net importers, an economic reversal that carries deep industrial and strategic implications.
In 2024, India imported copper worth $10.3 billion, while exports stood at barely $2.1 billion. The imbalance is not about resource scarcity but about capacity. The country’s vast reserves over 160 million tonnes remain underutilised, while its smelting and refining infrastructure has failed to keep pace with industrial demand.
Sterlite Copper smelter
A key inflection point was the closure of the Sterlite Copper smelter in Thoothukudi, which once met more than a third of India’s refined copper demand. Since its shutdown, India has slipped into import dependence, ceding ground to regional competitors. Imports of copper concentrates the raw material for refined copper have doubled from Rs 13,000 crore in FY19 to roughly Rs 26,000 crore in FY24, underscoring the widening gap between domestic capacity and consumption. Every tonne imported instead of refined domestically represents lost jobs, lost technology gains, and lost leverage in a metal that underpins the modern economy.
While India’s export strength has waned, the vacuum has been swiftly filled by its neighbour. Pakistan, traditionally seen as an industrial lightweight, is quietly carving out a niche in the copper trade. In 2023, Pakistan’s exports of “copper and articles thereof” (HS 74) reached about $772 million, with a massive share of nearly 91% (roughly $704 million) consists of refined and unwrought copper and alloys. Strikingly, about 97% of these exports went to China, the world’s largest consumer of the metal. With its RekoDiq and Saindak projects in Balochistan backed by global investors, Pakistan’s copper output is expected to double by the end of the decade. While India’s copper export base has shrunk, Pakistan is capitalising on a value chain that India once dominated, positioning itself as a regional supplier to global manufacturing hubs. This is not merely a trade statistic it is a shift in regional industrial dynamics.
Copper is not just another metal it is the conductor of the clean-energy transition. Each electric vehicle uses about four times more copper than a conventional car. Every megawatt of solar power requires over five tonnes of copper, and modern data centres rely on it to power the digital economy. From semiconductors to power grids, copper runs through the wiring of the modern world. By ceding ground in this sector, India is forfeiting a share of the green industrial revolution.
A nation with stronger reserves, higher technological capability, and far greater industrial demand has allowed itself to fall behind. For a country aiming to lead in green mobility, renewable energy, and electronics manufacturing, a lack of domestic refining capacity undermines more than just trade numbers it undermines the foundations of industrial self-reliance.
Copper value chain
If India is to reclaim its footing in the copper value chain, it must act decisively. This is why the case for reviving Sterlite Copper is no longer merely an industrial argument- it a strategic one. Before its closure, the Thoothukudi plant contributed significantly to India’s refined copper supply, created thousands of jobs, and supported an entire ecosystem of fertilizer, chemical, cement, and electrical industries. Even its by-products had economic value: copper slag replaced nearly 200,000 MT of river sand and 230,000 MT of iron ore in construction, easing pressure on natural resources.
The case for reopening Sterlite is about building a new generation of green and transparent industry one that addresses environmental concerns while securing India’s strategic interests. The proposed Green Copper Restart envisions exactly that. The upgraded facility will integrate advanced ISASMELT™ technology, Zero Liquid Discharge systems, and real-time emission monitoring connected to public dashboards. A hybrid production model, sourcing 70% primary copper and 30% recycled material, will reduce waste, cut emissions, and build a circular copper economy aligned with India’s climate commitments.
The plant will operate as a water-positive facility, using desalinated and treated wastewater while supplying surplus clean water to nearby communities. The phosphoric acid unit a past environmental concern will remain permanently closed, and all copper slag will be reused in construction. These measures will cut hazardous waste by 40% and emissions by over 30%. A Local Management Committee of community representatives, experts, and officials will ensure transparent oversight, with real-time emission and effluent data publicly available reinforcing accountability and trust.
These reforms position Sterlite not as a flashpoint, but as a model for how heavy industry can coexist with sustainability and social accountability. With China refining nearly 70% of the world’s copper, India’s reliance on imported metal exposes it to strategic vulnerability. Reviving domestic smelting capacity would secure critical materials, support the clean-energy transition, and position India as a South Asian copper hub a counterweight to China’s dominance and Pakistan’s emerging foothold.
As Pakistan scales up production and China tightens its grip on global refining, India cannot afford to remain a bystander. Each year of delay widens the gap, costing the nation production, revenue, and strategic ground. The road to energy security and industrial leadership runs through Thoothukudi. A green, transparent restart of Sterlite Copper is more than an industrial decision essential for India to reclaim its place in the global copper value chain and lead the clean-energy future.
Divya Dhingra has done PhD from IIT Delhi.
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