India Set to Defend Copper Import Curbs Citing Adequate Domestic Supply

The Government of India is expected to argue that sufficient domestic supply of copper cathodes exists as it prepares its official response to a legal challenge filed by two trade associations opposing recent curbs on copper imports.

The challenge, lodged with the Directorate General of Trade Remedies (DGTR), centers on recent government policies aimed at restricting imports of copper cathodes — refined copper used in electrical conductors, cables, and industrial applications. The trade groups claim the restrictions are adversely impacting downstream manufacturers that rely on steady and competitively priced copper supplies.

However, sources familiar with the matter indicate that the Indian government will present data from domestic producers, suggesting that current production levels are adequate to meet the country’s demand. India has seen a rise in local copper production following the expansion of several smelters and the commissioning of new refining units over the past two years.

A senior official from the Ministry of Commerce and Industry said:

“The government’s position is that domestic capacity is underutilized, and these import restrictions are necessary to support local industry and reduce dependency on foreign suppliers, in line with the vision of Atmanirbhar Bharat.”

Industry Reactions

The copper sector remains divided on the issue. Major domestic producers, including Hindalco Industries and Vedanta Ltd., have welcomed the restrictions, arguing they help stabilize prices and ensure a level playing field against cheaper foreign imports, particularly from Southeast Asia and the Middle East.

In contrast, downstream manufacturers—particularly those in the wire and cable industries—have warned that limited access to imported copper cathodes could drive up input costs, reduce competitiveness, and lead to production delays.

A spokesperson from one of the trade associations stated:

“While we support the growth of domestic industry, the current domestic production cannot consistently meet quality and volume requirements. The import curbs are hurting MSMEs that form the backbone of the electrical and electronics sectors.”

Legal and Trade Implications

The case now before the DGTR could have wider implications, including potential challenges under World Trade Organization (WTO) rules if India’s actions are viewed as protectionist. The government must walk a tightrope between fostering domestic industry and upholding its international trade commitments.

The final outcome will also likely influence future policy decisions in other sectors, as India continues to implement import restrictions to boost self-reliance under the Atmanirbhar Bharat initiative.