India's plastic waste crisis could be its greatest economic chance

India Today

05-06-2025

India generates nearly 3.46 million tonnes of plastic waste annually, placing it behind only the US and the European Union. Yet it recycles just 8% of that waste.With projections suggesting a rise in plastic consumption to 70.5 million tonnes by 2035, continuing with the current systems will only raise recycling rates to a meager 11% (National Circular Economy Roadmap for Reducing Plastic Waste in India).advertisementWhat appears to be a burden, waste, could actually become a productive stream of materials, income, and jobs. If addressed with urgency and clarity, India can emerge as a global leader in circular economy practices.
The scale of waste, whether plastic, e-waste, tyres, construction debris, or solar panels, is not a liability but a potential stream of raw material, value creation, and jobs.
A circular economy cannot grow from a few isolated projects. (Photo: Getty)
The government has laid a strong foundation by setting up a dedicated Circular Economy Cell in NITI Aayog and finalizing action plans for 10 major waste categories. At the same time, states, industries, and communities are showing promising intent through public-private collaborations and decentralized innovations.Policy Backing and Strategic FocusadvertisementIndia's steps toward a circular economy are shaped by a robust policy framework. Action plans supported by Extended Producer Responsibility (EPR), eco-labelling rules, and bans on select single-use plastics signal a deeper institutional commitment to reducing resource dependency and improving recycling.The 2016 Plastic Waste Management Rules, the revised e-Waste Management Rules, and specific EPR targets are helping bring accountability to producers and importers.Mission LiFE and Eco-Mark initiatives are reinforcing market demand for sustainable alternatives. But regulations alone are not enough. The success of these policies depends on effective enforcement, clarity across jurisdictions, and regular updates that respond to technological and market changes.Industry at the ForefrontIndian businesses are beginning to reimagine waste as a value chain input rather than a disposal challenge. The India Plastics Pact is one such initiative where businesses have come together with civil society and regulators to redesign plastic packaging and eliminate materials that cannot be reused or recycled.Beyond plastics, the private sector is finding value in what was earlier discarded. India's metal scrap recycling industry was valued at about USD 11 billion in 2023 as per PwC. By 2025, there could be around 22.5 million end-of-life vehicles (ELVs), which could provide 5 million tonnes of steel scrap and over 1 million tonnes of aluminum and copper. If we have proper sorting and recovery systems, this waste can be reused in manufacturing, easing pressure on natural resources and lowering emissions.Women and the Informal SectoradvertisementMuch of India's recycling work is powered by informal workers, many of whom are women. Women's cooperatives, especially in states like Kerala, have set up efficient systems for household-level plastic collection and segregation.These initiatives do not just improve recycling rates; they create stable jobs and drive local change.
Much of India's recycling work is powered by informal workers. (Photo: Getty)
However, many of these roles remain informal, underpaid, and unsupported. To unlock their full potential, their work needs to be brought into the formal system through skilling, social security, and access to finance.Additionally, women entrepreneurs are stepping into plastic recycling businesses but face barriers such as limited access to technology, capital, and training. A more deliberate approach to support women-led recycling units could double the impact, economically and socially.advertisementTraditional Practices, Contemporary RelevanceIndia's villages offer practical lessons in circular living. Food waste is composted or fed to animals. Packaging often relies on banana leaves, clay pots, and cotton or jute bags. These low-impact, biodegradable solutions have existed for generations and are seeing a revival.The ethos of 'waste is wealth' is not new in India.What is new is the opportunity to bring this thinking into modern industry. With 350 million tonnes of agricultural waste generated annually, there's scope to produce over 18,000 MW of power. Used oil from industries can be reprocessed, cutting import dependency. Even India's growing solar infrastructure, which could produce 600 kilotonnes of waste by 2030, can become a valuable recycling stream with the right technology.Building the Circular EcosystemA circular economy cannot grow from a few isolated projects. It requires different groups, producers, regulators, recyclers, researchers, and consumers, to work together with a shared goal.To build this kind of system, we need to focus on a few practical steps:advertisementEnforce existing rules more consistently and improve coordination between state and central agencies.Invest in recycling facilities and systems that track materials to reduce losses.Create demand for recycled products by encouraging public procurement and clear eco-labels.Provide training and support especially for small businesses and informal workers so they can adopt circular practices.Make data more transparent, including understanding the full life cycle of materials, to help policymakers and consumers make better decisions.Use new financial tools like green bonds or blended finance to lower risks and help fund circular projects.
India can emerge as a global leader in circular economy practices. (Photo: Getty)
India's circular economy is not a borrowed model, it is built on indigenous wisdom, strong policy intent, and a thriving entrepreneurial spirit. It speaks to the country's future growth ambitions, while honoring the efficient, frugal, and regenerative practices of its past.With the potential to unlock $218 billion by 2030 and over USD 624 billion by 2050 through circularity, India can show the world how economic growth and environmental responsibility can move together.Must Watch