India’s ambition to transition to a resource-efficient and waste-free economy is hindered by fragmented regulation, weak enforcement, and uneven infrastructure, according to a new 213-page report by the Confederation of Indian Industry (CII).
The report, released on November 5, analyses major policy gaps across 20 sectors — including municipal solid waste, industrial wastewater, e-waste, plastics, textiles, tyres, and construction debris — and warns that India’s approach to circular economy remains inconsistent and subsidy-driven.
Ironically, the CII suggests that government incentives — or what Prime Minister Narendra Modi once called “revdi” when referring to welfare handouts — should be central to India’s waste management strategy. “Economic incentives are vital to attract investment and foster innovation in circular solutions,” it states, calling for low-interest financing, fast-track clearances, recognition programs, and access to green procurement markets.
Municipal Solid Waste: Gaps Between Policy and Practice
India generates between 50 and 62 million metric tonnes (MT) of municipal solid waste (MSW) annually. Urban residents produce an average of 330–550 grams per day, rising to 600–700 grams in metro cities. The report projects MSW generation will rise to 165 million MT by 2030 and 436 million MT by 2050.
Challenging government claims that over 90% of waste is processed, the CII says only 15 states and union territories treat more than half their waste. Citing the Central Pollution Control Board (CPCB), it notes that 24% of waste is landfilled and 22% remains unaccounted for due to supply chain leakages.
Organic waste, which forms 40–60% of total MSW, decomposes in landfills and emits methane — a greenhouse gas that contributes to 20% of global GHG emissions, with India’s MSW responsible for up to 11% of the global total. Open burning of waste, the report adds, contributes nearly 18% of India’s total PM2.5 emissions, projected to double by 2050.
The report also highlights the poor working conditions of the informal waste sector, which operates under hazardous conditions with minimal social protection.
Despite the potential to produce 2,523 tonnes per day (TPD) of bio-CNG from MSW, India currently generates only 46 TPD. The compliance rate for dry and wet waste segregation stands at 32%, against the required 90%.
“A critical challenge is the gap between policy mandates and on-ground implementation,” the report notes, adding that most Urban Local Bodies (ULBs) fail to enforce segregation and penal provisions.
Wastewater Management: Limited Capacity and Poor Enforcement
In the wastewater sector, the report finds that local governments lack the technical capacity to manage public-private partnership (PPP) projects or adopt innovative treatment systems.
Of the 1,469 sewage treatment plants (STPs) across India, with a total capacity of 31,841 million litres per day (MLD), only 43.9% of the total sewage generated is treated. Many plants are outdated, underutilized, or inefficient, resulting in inconsistent treatment outcomes.
The report identifies greywater and fecal sludge from informal settlements as an additional burden, aggravated by the absence of reliable data. “There is no standard for data collection across municipalities,” it observes, adding that even available data remain inaccessible to decision-makers.
CII also points to the lack of institutional accountability, noting that urban programmes such as AMRUT 2.0 and Swachh Bharat Mission 2.0 do not have designated enforcement agencies for wastewater reuse regulations.
Industrial Wastewater: Pollution and Overuse
India’s industrial wastewater crisis, according to the report, stems from water over-extraction, pollution, and the rising demands of agriculture — which consumes 90% of the nation’s freshwater. Citing CPCB data, it warns that 311 polluted river stretches have been identified across 279 rivers in 30 states and union territories.
Instead of holding industry accountable, the report suggests that many industrial areas are forced to rely on overexploited groundwater. “Bore wells are running dry or producing poor-quality water, while illegal wastewater discharges continue to pollute groundwater and surface water bodies,” it says.
E-Waste: Informal Sector Dominance
India is the world’s third-largest generator of electronic waste, producing over 1.6 million tonnes annually, projected to reach 5 million tonnes by 2030. Despite a formal recycling framework, the report says the informal sector handles over 85% of this waste, often using unsafe and environmentally damaging methods.
This leads to health risks for workers and the loss of valuable recoverable materials such as gold, copper, and rare earth metals. While the E-Waste (Management) Rules, 2022 introduced Extended Producer Responsibility (EPR) to ensure collection and recycling, fragmented implementation across states has limited results.
Hazardous Waste: Weak Oversight
The report criticizes the lack of mandatory recycling requirements under India’s Hazardous Waste Rules. It says wastes such as used batteries, insect repellent bottles, CFL bulbs, and waste oils are mainly handled by informal operators with little understanding of treatment processes.
“The toxicity and hazards associated with certain waste types often go unrecognized, leading to improper handling and treatment,” it warns. There is also no legal requirement for waste generators to send hazardous material to authorized facilities for proper utilization.
Despite India banning the import of waste tyres for pyrolysis in 2022, the practice continues. “The unchecked import of waste or scrap tyres surged five-fold from FY21 to FY24, contradicting the goals of the EPR scheme,” the report says, adding that illegal imports burden waste management infrastructure.
On plastics, which it calls “a cornerstone of India’s modern economy,” the report notes that India generates 3.5 million tonnes of plastic waste annually. Between 30% and 60% is recycled, mostly through the informal sector. Maharashtra, Tamil Nadu, and Gujarat together account for 37% of total waste generation. Informal workers like kabadiwalas and sorters face serious health risks, including respiratory issues.
The civil construction and demolition sector, projected to make India the world’s third-largest market by 2025, has also become a major environmental concern due to air pollution and resource depletion during raw material mining.
Textile Waste: Unsafe Conditions, Missed Potential
India is the third-largest producer of dry textile waste, accounting for more than 8.5% of the global total. Yet recycled textiles remain in a nascent stage — less than 20% of collected material becomes high-quality input, and recycled products make up under 10% of the domestic supply chain.
The result, according to the report, is that “more than four million workers handle textile waste under unsafe conditions,” with minimal integration of circular solutions into the formal economy.
Call for Incentives and PPP
Even while advocating measures such as Extended Producer Responsibility (EPR) — a policy approach that makes producers responsible for their products throughout their lifecycle to minimize waste — the report suggests that this cannot be achieved without government “help.” In fact, it seeks to underplay the "polluted pays" principle.
Throughout the report, CII underscores the need for economic incentives and stronger public-private partnerships to advance circular economy goals. “PPP plays a critical role in mobilizing investment, expertise, and technology for circular projects,” it says, calling for collaborative governance between the public sector, private enterprises, and financial institutions.
However, critics are likely to note that CII’s recommendations place heavy reliance on government subsidies and risk-sharing mechanisms — effectively seeking public support for a problem much of industry has helped create.
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