Cheap copper imports hurting domestic manufacturing, says industry body

• PTI

• Published On Dec 15, 2025 at 10:34 AM IST

New Delhi: Cheap imports of copper under multiple free trade agreements are “severely damaging” Indian manufacturing, industry body IPCPA said and sought immediate government interventions in the form of a safeguard duty and quantitative restrictions on inbound shipments from overseas. According to the Indian Primary Copper Producers Association (IPCPA), a surge in zero-duty copper imports is eroding the country’s domestic smelting and downstream manufacturing sector, even as over ₹20,000 crore has been invested in recent years to achieve self-sufficiency. “Zero-duty imports from FTA partners are severely damaging Indian smelting and refining,” the ICPA said, and demanded that a 3 per cent safeguard duty should be imposed on copper imports of certain categories, irrespective of the FTA (free trade agreement) status. It also raised concerns about the India-UAE Comprehensive Economic Partnership Agreement (CEPA), under which customs duties on copper wire rods have fallen to one per cent in FY26, and the levy is expected to be eliminated by FY27.

The problem worsened due to an inflated Tariff Rate Quota (TRQ) of 85,000 tonnes per annum (KTPA) – far above the intended 29 KTPA – triggering a 340 per cent surge in imports from the UAE between FY22 and FY26, the industry body said, adding that the tariff rate quota should be corrected and capped at its original level.