As we move towards sustainability and resource efficiency, it is essential for the upcoming budget to recognise and incentivise the recycling industry as a key contributor to the nation’s economic and environmental goals.

As part of the recent report by Mordor intelligence, The Indian waste management industry holds immense potential, with only 30% of the 75% recyclable waste currently being recycled .Furthermore as per a recent Indian Central Pollution Control Board (CPCB) study, it is projected the annual waste generation in India will escalate to 165 MT by 2030, citing the huge opportunity it holds.

First, the formal recognition of recycling as an industry is long overdue. A structured approach, including Recycling-Linked Incentive Schemes (RLI), Allocation of Industrial lands for Recycling Plant Setups as part of the State Industrial Policy will optimize reverse logistics and strengthen India’s waste-to-value ecosystem.

Second, access to working capital remains a bottleneck for recyclers. Policies such as a capital subsidy on recycling equipment and low-interest financing for infrastructure can help scale operations and encourage investments in this sector.

Third, GST rationalisation is a pressing need. The 18% GST on scrap materials is counterproductive and discourages circularity. We urge the government to reduce input GST on scrap and recycled materials to 5%, which will ensure cost viability and improve adoption of recycled content across industries.

Lastly, integration of circular economy principles in India’s industrial strategy can unlock significant economic and environmental benefits. By fostering innovation, strengthening EPR frameworks, and aligning taxation policies, India can become a global leader in sustainable material management.

We look forward to a budget that acknowledges recycling as a pillar of sustainable growth and provides the right incentives to accelerate India’s transition towards a robust circular economy.