Synopsis
As India prepares for its Union Budget 2025-26, the emphasis on sustainability and self-sufficiency is crucial. With e-waste generation on the rise, strategic policy measures are being advocated to enhance the recycling ecosystem.Key Takeaways
- India generates over 3.2 million metric tonnes of e-waste annually.
- Industry leaders call for a Production-Linked Incentive scheme for recycling.
- Over 90% of critical minerals are imported, highlighting supply chain vulnerabilities.
- Policies promoting domestic recycling are essential for self-sufficiency.
- A supportive tax regime is crucial for investment and innovation in waste management.
New Delhi, Jan 31 (NationPress) As India prepares for the Union Budget 2025-26, the emphasis on sustainability and resource self-sufficiency has reached a crucial juncture.
The nation produces over 3.2 million metric tonnes of e-waste each year, ranking it as the third-largest producer globally. Industry experts are calling for strategic policy initiatives, including a Production-Linked Incentive (PLI) program for the recycling sector, a reversal of the GST increase from 5 percent to 18 percent on waste management services, and greater investment in innovative recycling technologies.
India is currently importing more than 90 percent of its essential minerals, which exposes the economy to vulnerabilities in global supply chains. The forthcoming budget offers a significant chance to expand upon the recently introduced National Critical Mineral Mission and strive towards a self-sufficient circular economy.
“India is at a transformative stage in its quest for a recycling revolution, propelled by the substantial rise in e-waste generation, which has surged by 73 percent from 2019 to 2023. The launch of the ‘Critical Minerals Mission’ presents a distinct opportunity to tackle this issue while establishing a self-reliant ecosystem for resource recovery,” stated Nitin Gupta, CEO and Co-founder of Attero.
“To expedite advancements, we strongly propose the initiation of a PLI scheme for the recycling sector. This policy would not only encourage investments in cutting-edge recycling technologies but also support extensive capacity building, thereby decreasing dependency on imports for critical minerals,” Gupta added.
He emphasized that despite China being a primary supplier of critical minerals, India must implement policies that foster recycling and domestic production to attain self-sufficiency. Comprehensive policy backing for the extraction and utilization of critical minerals from e-waste and lithium-ion batteries is vital.
“This spans focused efforts on the efficient salvage of high-value materials such as lithium, cobalt, and nickel from end-of-life products like EV batteries and electronic devices. Such initiatives would create a seamless framework that integrates extended producer responsibility (EPR) mechanisms with an enhanced value chain to promote the development of a circular economy. We also applaud initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, and anticipate additional measures that support domestic recycling of EV batteries and other e-waste components,” Gupta noted.
Nimit Aggarwal, Founder & Managing Director of EcoEx, indicated that the waste management sector is at a critical juncture due to the recent GST changes.
“The increase from 5 percent to 18 percent has posed significant challenges, especially for businesses striving to innovate and meet sustainability targets. We urge the government to consider reversing the GST increase in the upcoming budget. Furthermore, while the reverse charge mechanism (RCM) is a potential solution, it has added layers of compliance complexity, particularly for SMEs,” Aggarwal stated.
He highlighted the necessity to further streamline RCM or exempt essential industries like waste management, allowing businesses to concentrate on their fundamental missions.
“A supportive tax framework is crucial to stimulate investment, foster innovation, and develop robust infrastructure within the waste management sector. We anticipate assistance from the government in establishing a balanced GST structure that fosters sustainable growth and aligns with India's environmental objectives,” Aggarwal concluded.
Abhay Deshpande, Founder and CEO of Recykal, commended the introduction of the Critical Minerals Mission and the expected Production Linked Incentive (PLI) scheme in Budget 2024.
“With India heavily dependent on imports for critical minerals, fortifying domestic recycling infrastructure has become a strategic imperative. E-waste and battery recycling are essential for reclaiming rare earth elements and critical minerals, especially as global production is concentrated in a limited number of countries,” he added.
To reduce this dependency, India must prioritize the advancement of recycling technologies, provide financial backing for state-of-the-art facilities, and invest in research and development for critical mineral recovery.
“Moreover, eliminating GST to 'nil' for both plastic waste and recycling machinery would greatly encourage recycling initiatives and hasten the adoption of advanced technologies,” Deshpande remarked.
The Union Budget 2025-26 holds the potential to significantly enhance India’s waste management and critical mineral recovery landscape. With global demand for lithium, cobalt, and nickel projected to surge by 500 percent by 2050, securing a domestic supply chain is essential.
A balanced and visionary budget will not only promote sustainable economic development but also position India as a frontrunner in resource efficiency and a clean energy transition.
