How to turn India's e-waste problem, third largest, into opportunity? Simple: Offer industry incentives!

By Rajiv Shah

How should one interpret a major problem that may be bogging down a private consultant while preparing an industry-friendly report on a situation that adversely impacts society—especially when the consultant sees little possibility of progress in the supposed desired direction?

Simple: call it an "opportunity" that the industry must seize, even providing an estimate of how big the opportunity could be.

And how does the consultant suggest the industry should reach this "opportunity"? By ensuring that the Government of India introduces incentives to turn it into a profitable business. It's as simple as that!

I recently received a report from Redseer Strategy Consultants, which calls itself "India’s premier strategy consultancy firm" with a global footprint. The report claims that India’s e-waste holds a "$6 billion economic opportunity", pointing out that this so-called opportunity has emerged because "e-waste generation in India has doubled since FY14, driven by urbanization and rising incomes."

The 53-page report, full of graphs, advocates for this "opportunity" while also acknowledging major issues. However, it refuses to elaborate on how these issues should be addressed—except through government incentives.

One key issue: "Only 16% of consumer e-waste is processed by formal recyclers, while informal channels handle 60-70%, leading to inefficiencies and environmental hazards."

Another: Despite projections (whose sources remain unclear) of 17% CAGR growth in the formal recycling sector by FY35, it is expected to handle just 40% of India’s e-waste a decade from now.

This situation persists despite the Government of India introducing Extended Producer Responsibility (EPR) in 2011 to build a "sustainable e-waste management ecosystem." Initially voluntary, EPR has since evolved into a "mandatory system with defined collection targets for producers." Yet, the report regrets that "gaps remain due to low minimum EPR fees and insufficient formal recycling capacity."

Ironically, the report does not seem to view India’s status as the world’s third-largest e-waste producer (after China and the U.S.), with e-waste doubling from 2 MMT in FY14 to 3.8 MMT in FY24, as a serious problem. Instead, it calls it an "opportunity."

According to the report, "efficient e-waste metal recovery could cut India’s metal imports by $1.7 billion." However, it does not explain why this is unlikely to happen even a decade later. Is it due to a lack of industry incentives—despite the sector already benefiting from significant subsidies? Instead, the report merely states that there is an "urgent need for structured e-waste management and increased formal recycling infrastructure to unlock the sector's full potential."

The report highlights that "the consumer segment contributed nearly 70% of total e-waste in FY24." It also notes a key trend: while appliances are becoming more compact and lightweight, the sheer volume of discarded items is increasing, making efficient recycling strategies essential.

So why is the formal e-waste sector failing to grow? The report explains: "The sector faces stiff competition from informal players who benefit from lower compliance costs and extensive collection networks. An estimated 60-70% of consumer e-waste is processed through informal channels, leading to unsafe extraction methods, environmental pollution, and health risks for workers."

Additionally, the report notes that "10-15% of e-waste remains stored in households, and 8-10% ends up in landfills, reducing overall recycling efficiency." It further admits that "current technologies can extract only 60-65% ($3.6 billion) of potential value, while the current extraction by formal and informal recyclers amounts to just $1.1 billion."

It adds: "While formal recyclers account for only 25-30% of extracted metal value, they recover just one-third of the total potential. The remaining two-thirds are processed through informal channels, leading to inefficiencies and lost economic value."

Despite the formal sector's lack of effectiveness in managing e-waste, the report insists that only formal recyclers can handle the problem properly:

"Strengthening formal recycling networks is key to improving metal recovery rates and maximizing 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."

To transform India’s e-waste problem into an "opportunity," the report urges the Government of India to strengthen regulatory enforcement and incentivize circular economy practices. These incentives, it argues, "will be crucial for sustainable economic and environmental benefits."

Only then, it claims, will "the right policy push lead to a significant reduction in reliance on metal imports, helping India itself as a global leader in e-waste recycling." And that is this "right policy push"?

Let me quote: "Targeted subsidies or tax benefits to encourage investments in advance facilities and technology"!

Comments

Grueling summer ahead: Cuttack’s alarming health trends and what they mean for Odisha

By Sudhansu R Das The preparation to face the summer should begin early in Odisha. People in the state endure long, grueling summer months starting from mid-February and extending until the end of October. This prolonged heat adversely affects productivity, causes deaths and diseases, and impacts agriculture, tourism and the unorganized sector. The social, economic and cultural life of the state remains severely disrupted during the peak heat months.

Stronger India–Russia partnership highlights a missed energy breakthrough

By N.S. Venkataraman* The recent visit of Russian President Vladimir Putin to India was widely publicized across several countries and has attracted significant global attention. The warmth with which Mr. Putin was received by Prime Minister Narendra Modi was particularly noted, prompting policy planners worldwide to examine the implications of this cordial relationship for the global economy and political climate. India–Russia relations have stood on a strong foundation for decades and have consistently withstood geopolitical shifts. This is in marked contrast to India’s ties with the United States, which have experienced fluctuations under different U.S. administrations.

From natural farming to fair prices: Young entrepreneurs show a new path

By Bharat Dogra There have been frequent debates on agro-business companies not showing adequate concern for the livelihoods of small farmers. Farmers’ unions have often protested—generally with good reason—that while they do not receive fair returns despite high risks and hard work, corporate interests that merely process the crops produced by farmers earn disproportionately high profits. Hence, there is a growing demand for alternative models of agro-business development that demonstrate genuine commitment to protecting farmer livelihoods.

The Vande Mataram debate and the politics of manufactured controversy

By Vidya Bhushan Rawat* The recent Vande Mataram debate in Parliament was never meant to foster genuine dialogue. Each political party spoke past the other, addressing its own constituency, ensuring that clips went viral rather than contributing to meaningful deliberation. The objective was clear: to construct a Hindutva narrative ahead of the Bengal elections. Predictably, the Lok Sabha will likely expunge the opposition’s “controversial” remarks while retaining blatant inaccuracies voiced by ministers and ruling-party members. The BJP has mastered the art of inserting distortions into parliamentary records to provide them with a veneer of historical legitimacy.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

The cost of being Indian: How inequality and market logic redefine rights

By Vikas Gupta We, the people of India, are engaged in a daily tryst—read: struggle—for basic human rights. For the seemingly well-to-do, the wish list includes constant water supply, clean air, safe roads, punctual public transportation, and crime-free neighbourhoods. For those further down the ladder, the struggle is starker: food that fills the stomach, water that doesn’t sicken, medicines that don’t kill, houses that don’t flood, habitats at safe distances from polluted streams or garbage piles, and exploitation-free environments in the public institutions they are compelled to navigate.

Why India must urgently strengthen its policies for an ageing population

By Bharat Dogra A quiet but far-reaching demographic transformation is reshaping much of the world. As life expectancy rises and birth rates fall, societies are witnessing a rapid increase in the proportion of older people. This shift has profound implications for public policy, and the need to strengthen frameworks for healthy and secure ageing has never been more urgent. India is among the countries where these pressures will intensify most sharply in the coming decades.

Thota Sitaramaiah: An internal pillar of an underground organisation

By Harsh Thakor* Thota Sitaramaiah was regarded within his circles as an example of the many individuals whose work in various underground movements remained largely unknown to the wider public. While some leaders become visible through organisational roles or media attention, many others contribute quietly, without public recognition. Sitaramaiah was considered one such figure. He passed away on December 8, 2025, at the age of 65.

Proposals for Babri Masjid, Ram Temple spark fears of polarisation before West Bengal polls

By A Representative A political debate has emerged in West Bengal following recent announcements about plans for new religious structures in Murshidabad district, including a proposed mosque to be named Babri Masjid and a separate announcement by a BJP leader regarding the construction of a Ram temple in another location within Behrampur.

Search This Blog