Bengaluru, Feb 14 (IANS): There is an estimated economic potential of $6 billion from recoverable materials through metal extraction as India’s e-waste holds a great economic opportunity, a report said on Friday.
India is now the world’s third-largest e-waste producer, after China and the US. The country’s e-waste has doubled from 2 million metric tonnes (MMT) in FY14 to 3.8 MMT in FY24, fuelled by urbanisation and rising incomes, said the report by Redseer Strategy Consultants.
Predominantly generated by households and businesses, the consumer segment contributes nearly 70 per cent of total e-waste in FY24.
A significant trend in e-waste generation is the shift in material intensity. While appliances are becoming more compact and lightweight, the sheer volume of discarded items is increasing, necessitating efficient recycling strategies.
“The volume of e-waste is expected to rise in the coming years. The rising value of metals in e-waste presents a major opportunity for India to enhance recovery efficiency and establish itself as a leader in sustainable metal extraction,” said Jasbir S. Juneja, Partner at Redseer Strategy Consultants.
Currently, only 16 per cent of consumer e-waste in India is processed by formal recyclers. Despite projections of a 17 per cent CAGR growth in the formal recycling sector by FY35, it is expected to handle just 40 per cent of India’s e-waste.
The sector faces stiff competition from informal players who benefit from lower compliance costs and extensive collection networks.
Meanwhile, 10-15 per cent of e-waste remains stored in households, and 8-10 per cent ends up in landfills, reducing overall recycling efficiency.
To build a sustainable e-waste management ecosystem, the Indian government has introduced the Extended Producer Responsibility (EPR) framework. Initially voluntary in 2011, EPR has since evolved into a mandatory system with defined collection targets for producers. However, gaps remain due to low minimum EPR fees and insufficient formal recycling capacity.
Strengthening formal recycling networks is key to improving metal recovery rates and maximising returns. This could slash India’s metal import demand by up to $1.7 billion, while ensuring a steady supply of high-value recycled metals.
Scaling formal recycling operations, strengthening regulatory enforcement, and incentivising circular economy practices will be crucial for sustainable economic and environmental benefits, said Juneja.