Copper Crisis: Indian Manufacturing Faces Threat from Cheap Imports

India's domestic copper industry is facing severe damage due to cheap imports under free trade agreements, says IPCPA. The industry body calls for a 3% safeguard duty and quantitative import restrictions. Surge in copper from UAE and ASEAN, facilitated by FTAs, is eroding domestic self-sufficiency.

The Indian Primary Copper Producers Association (IPCPA) has raised alarm over the detrimental impact of cheap copper imports on the country's manufacturing sector. Blaming multiple free trade agreements, the IPCPA is urging the government for immediate interventions such as imposing a safeguard duty and restricting import quantities.

Despite significant investments to boost self-reliance, zero-duty copper imports are eroding India's smelting and downstream manufacturing industries. The IPCPA is pressing for a 3% safeguard duty on certain copper categories, regardless of FTA status, with particular emphasis on concerns around the India-UAE Comprehensive Economic Partnership Agreement.

The association highlights the severe economic stress in the global copper smelting industry, as declining Treatment and Refining Charges (TC/RC) worsen the situation, impacting Indian producers' viability. With copper imports skyrocketing under FTAs, there's a call for protective measures to support the domestic industry.

(With inputs from agencies.)