India’s e-recycling sector is set to witness significant expansion, projected to grow at a CAGR of 13.52%, reaching a market size of $198.52 million by 2032, according to a report by India Ratings and Research (Ind-Ra). The report, released on Wednesday, highlights the increasing business opportunities in the industry, driven by policy advancements and a growing demand for sustainable waste management solutions.
Market Potential and Industry Growth
Citing data from Astute Analytica, the report underscores India’s position as the third-largest e-waste producer, following China and the United States. The rising consumption of electronics, rapid technological advancements, and stricter regulatory frameworks, such as Extended Producer Responsibility (EPR) policies, are key drivers propelling the sector’s growth.
With 569 registered recyclers across the country, operating with a total annual recycling capacity of 1.79 million metric tonnes, India is seeing a gradual shift from an unregulated e-waste industry to a more structured market. The Central Pollution Control Board (CPCB) has been actively enforcing compliance, pushing the transition towards formalized recycling operations to reduce environmental and health risks.
Challenges and Opportunities in E-Recycling
Historically, India’s e-waste recycling industry has been dominated by informal players, leading to suboptimal waste disposal, environmental degradation, and health hazards. However, regulatory interventions are gradually phasing out unregistered recyclers, favoring organized players who adhere to compliance norms.
The report also highlights key challenges facing the sector, including:
- Reverse logistics inefficiencies in e-waste procurement.
- Dependence on EPR revenue, which contributes 25-30% of recyclers’ earnings.
- Fluctuating profitability, as EPR revenue collection is skewed towards the second half of the financial year.
- High working capital requirements, due to the unpredictable billing schedules of Original Equipment Manufacturers (OEMs).
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Regulatory Support and Future Outlook
Recent policy amendments have nearly doubled EPR fees per tonnage, increasing revenue resilience for recyclers. According to Ind-Ra’s Senior Director for Mid-Corporates, Abhash Sharma, the industry is poised for transformation, with higher margins from EPR revenue and premium-priced, ESG-friendly metal extraction.
Ind-Ra also emphasized the importance of direct e-waste sourcing, which eliminates middlemen, improves cost efficiency, and enhances recyclers’ profitability. The report suggests that investment in R&D, along with patented recycling technologies, will provide a competitive edge to companies looking to scale operations.
With government initiatives pushing for a structured regulatory framework, increased environmental scrutiny, and an expanding circular economy model, India’s e-recycling sector is set for long-term growth, offering lucrative investment opportunities for organized players.
