- 60-70% scrap trade still operates informally
- Over 75% of India’s recyclers remain unorganised
The International Copper Association (ICA) India has urged the government to formalise the country’s copper recycling sector and reduce the GST rate on copper scrap and copper articles from 18% to 5%. According to ICA India, such measures would improve transparency in scrap trading, increase the availability of quality feedstock for recyclers, and support India’s growing copper requirements amid the energy transition.
India’s secondary copper market
India’s copper scrap market already plays a significant role in the country’s copper value chain. Domestic copper demand currently stands at around 1.8 million tonnes annually, while secondary production contributes nearly 40% of the country’s refined copper output. India generates approximately 0.6 mnt of copper scrap every year and imports an additional 0.3 mnt, according to BigMint data.
Copper recycling relatively more sustainable than primary copper production, requiring nearly 85% less energy than primary production. Furthermore, around 83% of copper is used in an unalloyed form, making it easier to recover and recycle.
Despite its importance, the sector remains largely fragmented. India has more than 2,000 copper scrap processing units, including brass processors, with over 75% operating in the unorganised sector. ICA India estimates that nearly 60–70% of copper scrap transactions are conducted through informal cash-based channels. Consequently, a substantial portion of scrap is directly re-melted by small-scale operators rather than being processed through modern recycling and refining facilities.
This fragmented structure impacts both quality and supply efficiency. Direct re-melting often produces lower-grade copper products that are unsuitable for critical applications such as power infrastructure, renewable energy projects, electric vehicles, and electronics manufacturing. At the same time, organised recyclers investing in advanced secondary smelting and refining technologies face difficulties in securing sufficient volumes of quality scrap feedstock.
To address these issues, ICA India has recommended lowering GST to 5%, arguing that a reduced tax burden would encourage formal transactions, improve compliance, and bring more scrap volumes into the organised sector. A more transparent recycling ecosystem would strengthen scrap collection networks and improve raw material availability for modern recyclers.
If implemented, the measures could boost the production of refined-grade copper cathodes from recycled material, improve resource efficiency, and reduce dependence on primary metal sources. As India’s copper demand continues to rise on the back of electrification, renewable energy expansion, and manufacturing growth, a formalised recycling sector could become a critical pillar of the country’s long-term copper supply strategy.
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