E-recycling sector to reach Rs. 1,726.33 crore (US$ 198.52 million) by 2032 at CAGR of 13.52%: India Ratings and Research (Ind-Ra)
- IBEF
- February 20, 2025
The domestic e-recycling sector is poised for growth, with a projected compounded annual growth rate (CAGR) of 13.52%, reaching Rs. 1,726.33 crore (US$ 198.52 million) by 2032, according to India Ratings and Research (Ind-Ra). The report emphasised the need for a robust reverse logistics network for e-waste procurement to ensure contract fulfilment and the technical expertise required to secure extended producer responsibility (EPR) revenue. India ranks as the third-largest e-waste producer after China and the US. At the same time, Switzerland, Sweden, and Norway lead in efficient e-waste recycling. The Indian e-waste management market is expected to expand due to technological advancements, faster electronics turnover, and a stronger EPR policy that holds producers accountable for e-waste management.
Historically, India's e-waste recycling industry has been dominated by unorganised players, leading to sub-optimal disposal methods, health hazards, and environmental risks. The Central Pollution Control Board (CPCB) has registered 569 authorised recyclers with a combined annual capacity of 1.79 million metric tonnes under E-Waste (Management) Rules. The organised sector is expected to grow as CPCB registration becomes mandatory, ensuring compliance with standards and certifications. Ind-Ra noted that rising EPR fees, now nearly doubled, will enhance recyclers' resilience in a volatile market. EPR fees contribute 25-30% of revenue, but their irregular billing cycles could create working capital challenges. However, financial pressures are expected to ease towards the fiscal year-end as original equipment manufacturers (OEMs) work to meet CPCB-mandated annual EPR targets. A well-regulated industry framework and adherence to environmental, health, and safety norms remain crucial for sustainable operations in the sector.
The domestic e-recycling sector is poised for growth, with a projected compounded annual growth rate (CAGR) of 13.52%, reaching Rs. 1,726.33 crore (US$ 198.52 million) by 2032, according to India Ratings and Research (Ind-Ra). The report emphasised the need for a robust reverse logistics network for e-waste procurement to ensure contract fulfilment and the technical expertise required to secure extended producer responsibility (EPR) revenue. India ranks as the third-largest e-waste producer after China and the US. At the same time, Switzerland, Sweden, and Norway lead in efficient e-waste recycling. The Indian e-waste management market is expected to expand due to technological advancements, faster electronics turnover, and a stronger EPR policy that holds producers accountable for e-waste management.
Historically, India's e-waste recycling industry has been dominated by unorganised players, leading to sub-optimal disposal methods, health hazards, and environmental risks. The Central Pollution Control Board (CPCB) has registered 569 authorised recyclers with a combined annual capacity of 1.79 million metric tonnes under E-Waste (Management) Rules. The organised sector is expected to grow as CPCB registration becomes mandatory, ensuring compliance with standards and certifications. Ind-Ra noted that rising EPR fees, now nearly doubled, will enhance recyclers' resilience in a volatile market. EPR fees contribute 25-30% of revenue, but their irregular billing cycles could create working capital challenges. However, financial pressures are expected to ease towards the fiscal year-end as original equipment manufacturers (OEMs) work to meet CPCB-mandated annual EPR targets. A well-regulated industry framework and adherence to environmental, health, and safety norms remain crucial for sustainable operations in the sector.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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