India is missing out on waste recycling business worth thousands of crores due to inefficiencies in the largely informal scrap management sector, government think tank NITI Aayog has said. The warning comes as the country faces rapidly growing waste generation and rising global demand for recycled materials.

At the International Material Recycling Conference (IMRC) 2026 in Jaipur, NITI Aayog released reports assessing the recycling potential of e-waste, waste tyres, lithium-ion batteries and end-of-life vehicles. The reports highlight the sector’s role in a circular economy while pointing out major gaps in policy, infrastructure, and standards.

India generates around 6.2 million metric tonnes (MMT) of e-waste annually, expected to rise to 14 MMT by 2030. While 60 per cent of this is recoverable, only about 18 per cent is captured due to weak processing systems and informal recycling practices. Formal recycling capacity stands at just 2 MMT, and only 10 per cent of e-waste passes through authorised channels.

In waste tyres, India produces nearly 3 MMT annually, including 1.6 MMT from domestic end-of-life tyres. Revenue losses of roughly Rs 7,500 crore occur each year due to lack of standards and low-value recovery. NITI Aayog has proposed banning pyrolysis of imported tyres to encourage higher-value domestic recycling.

End-of-life vehicles are also on the rise, with numbers expected to reach 50 million by 2030, highlighting the need for a robust regulatory framework. Lithium-ion battery demand is projected to grow from 29 GWh to nearly 248 GWh, with spent battery volumes rising almost ninefold by 2025.

Officials noted that the gap between waste generation and formal recycling capacity results in losses of economic value, industrial inputs, and strategic resources. Industry leaders said formalisation is proving effective in metal recycling, where nearly 90 per cent is now organised, demonstrating that compliance, scale, and efficiency can be achieved. Waste, they stressed, is no longer just an environmental issue but a strategic economic resource.