India's E-Waste Presents $6 Billion Economic Potential: Study

Synopsis

A report highlights that India's e-waste sector could unlock an economic potential of $6 billion through efficient metal recovery. The country is the third-largest e-waste producer globally, facing challenges like informal recycling competition and low processing rates.

Key Takeaways

India's e-waste holds a potential of $6 billion.
Only 16 percent of e-waste is recycled formally.
Consumer segment generates 70 percent of e-waste.
Government's EPR framework aims for sustainable management.
Improving recycling could cut metal imports by $1.7 billion.

Bengaluru, Feb 14 (NationPress) An estimated economic potential of $6 billion can be realized from recoverable materials through metal extraction, highlighting the significant economic opportunity that India's e-waste presents, according to a report released on Friday.

India now ranks as the third-largest producer of e-waste globally, trailing only China and the US. The volume of e-waste has surged from 2 million metric tonnes (MMT) in FY14 to 3.8 MMT in FY24, driven by increasing urbanization and rising incomes, as detailed in the report by Redseer Strategy Consultants.

Households and businesses are the primary contributors to e-waste, with the consumer sector accounting for nearly 70 percent of total e-waste in FY24.

An important trend in e-waste generation is the transition towards more compact and lightweight appliances, which results in a growing volume of discarded materials, thus emphasizing the need for effective recycling strategies.

“The volume of e-waste is projected to continue rising in the upcoming years. The increasing value of metals found in e-waste represents a significant opportunity for India to enhance recovery efficiency and position itself as a leader in sustainable metal extraction,” stated Jasbir S. Juneja, Partner at Redseer Strategy Consultants.

Currently, only 16 percent of consumer e-waste in India is processed by formal recyclers. While the formal recycling sector is expected to grow at a 17 percent CAGR by FY35, it will only manage 40 percent of India's e-waste.

The sector encounters fierce competition from informal players who enjoy lower compliance costs and broader collection networks.

In addition, 10-15 percent of e-waste is stored in households, while 8-10 percent is disposed of in landfills, further diminishing overall recycling efficiency.

To create a sustainable e-waste management framework, the Indian government has implemented the Extended Producer Responsibility (EPR) framework. Initially voluntary in 2011, EPR has evolved into a mandatory system with specific collection targets for producers. However, challenges persist due to low minimum EPR fees and inadequate formal recycling capacity.

Enhancing formal recycling networks is crucial for improving metal recovery rates and maximizing returns. This could potentially reduce India’s metal import demand by up to $1.7 billion, while ensuring a consistent supply of high-value recycled metals.

Expanding formal recycling operations, bolstering regulatory enforcement, and promoting circular economy practices will be essential for achieving sustainable economic and environmental advantages, according to Juneja.