Union Budget 2026 Expectations: Push for Silver, Copper and Zinc Mining to Cut Import Dependence, Says Report

The Union Budget for the financial year 2026-27 is expected to focus on strengthening India's domestic metal production, particularly silver, copper and zinc, according to a Moneycontrol report citing people familiar with policy discussions. The initiative will aim to reduce the country's dependence on imports while supporting growing industrial demand, especially in electronics, electric vehicles and renewable energy sectors.

Union Budget 2026 Expectations: Focus in Silver, Copper, Zinc Production in 2026-27 Budget, Says Report

The forthcoming policy is likely to expand private sector participation in mining and processing of these critical metals. "There have been discussions about giving a real push to metals. The focus is on silver, copper, and zinc because these are critical for manufacturing and also where India has some resource base," a source told Moneycontrol.

The policy is expected to prioritize improving recovery from existing mines and encouraging private players to expand capacity. Silver, largely produced as a by-product of copper and zinc mining, will be a key focus given India's status as one of the world's largest consumers of the metal. Despite this, the country remains heavily reliant on imports, particularly from China.

"There is a clear view that India cannot keep importing critical metals if it wants to scale up manufacturing," the source added.

The previous budget had already introduced reforms to ease exploration of critical minerals, streamline auctions, and encourage private sector involvement. The new policy will likely build on this framework, offering incentives to expand mining capacity and refining capabilities.

Focus on Key Metals Like Silver, Zinc & Copper

Silver's rising use in electronics, solar panels, and electric vehicles makes it a priority. Sources said that improving zinc and copper production will also enhance silver output. "The thinking is to start by giving more mining leases to private players in silver-linked projects," a person familiar with the discussions told Moneycontrol.

India also imports a significant share of its copper needs despite having known reserves. With demand increasing from the power, construction, electronics, and EV sectors, domestic production is expected to be scaled up.

While silver, copper, and zinc are immediate priorities, rare earth metals are seen as a longer-term objective. India currently has limited rare earth refining capacity, and private participation is low. Experts highlighted that prospecting, mining, and refining rare earths could take five to six years due to technical, environmental, and land-related challenges.

"Rare earths are not an overnight story. From prospecting to actual mining can take five to six years. But if India wants to make electronics, batteries, and advanced vehicles, it cannot just import everything," said a source. Rare earths are essential for producing super-strong magnets used in EV motors, wind turbines, and military applications.

The mining policy aligns with the government's broader goal of reducing import dependence for critical inputs and strengthening domestic manufacturing. With global supply chains facing uncertainty and China tightening export controls on metals, developing indigenous mining capacity is seen as a strategic necessity.

"The manufacturing push will fail if inputs are all imported. Mining is messy, slow, and politically difficult, but without it, you cannot build a serious industrial base," the source added.

Goodreturns has not independently verified the details mentioned in this report.

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