With the rapid adoption of new technologies and the constant replacement of older devices, the generation of electronic waste — or e-waste — has surged. This rise in e-waste is closely linked to economic growth and technological advancement. From outdated landline phones to the latest smartphones, every electronic device eventually becomes waste.
In India, the increasing use of electrical and electronic equipment (EEE) has significantly driven up e-waste generation in recent years — and the numbers are only expected to grow.
Let’s break down the e-waste industry and explore potential investment opportunities.
Current State of India’s E-Waste Recycling Industry
Electronic waste is emerging as a major concern — not just in India, but globally. India is currently the third-largest generator of e-waste, following China and the US. According to Reuters, India produced approximately 1.7 million metric tons of e-waste in 2023–24, more than double the volume recorded six years ago.
Government data shows that only 43% of this e-waste was formally recycled in 2024. The remaining portion — nearly 80% — is handled by informal scrap dealers. These unorganised players often rely on unsafe recycling practices, posing serious risks to both human health and the environment.
However, there has been significant progress. India’s e-waste recycling efforts have improved remarkably. From just 23,330 tonnes in 2016–17, the amount of officially recycled e-waste soared to over 5.27 lakh tonnes in 2021–22 — an increase of nearly 23 times. As of now, there are 322 registered recyclers and 72 refurbishers operating across the country. Collectively, these recyclers have an annual capacity of over 22 lakh metric tons, while refurbishers can handle approximately 92,000 metric tons per year.
Government Initiatives to Boost the Industry
The Government of India has been actively working to formalise the sector by registering recyclers and refurbishers and spreading awareness to reduce reliance on informal methods.
Under the E-Waste (Management) Rules 2022, which came into effect on April 1, 2023, the Central Pollution Control Board (CPCB) introduced stricter responsibilities for original equipment manufacturers (OEMs). Manufacturers are now accountable for the collection and responsible recycling of the e-waste their products generate. They are also required to meet recycling targets exclusively through registered recyclers.
What’s in it for Investors?
Shorter product life cycles and rapid tech upgrades are fuelling e-waste growth. In 2022 alone, global e-waste reached 62 million metric tons — almost double the amount generated in 2010. Despite this, only 22.3% was formally collected and recycled. This growing gap highlights a rising demand for sustainable and efficient e-waste management solutions — and a clear opportunity for businesses and investors in the space.
Meanwhile, India’s consumer durables market is projected to grow at a 10% annual rate between 2022 and 2027. Without proper recycling mechanisms, this growth could lead to even more e-waste.
According to Eco Recycling Ltd, about 85% of India’s e-waste is currently processed by the informal sector — comprising mostly small, scattered scrap dealers using unscientific methods. Only 15% is handled by the organised sector. This stark imbalance indicates significant room for investment and growth.
What’s Next?
India’s domestic e-waste recycling industry is on the verge of major expansion. India Ratings and Research (Ind-Ra) forecasts a compound annual growth rate (CAGR) of 13.52% for the sector. By 2032, the market is expected to reach Rs 1,726.33 crore (approximately $198.52 million), with the Extended Producer Responsibility (EPR) policy playing a key role in driving this momentum.
That said, recycling rates in India are still comparatively low. Research by Redseer indicates that India lags behind the US — where recycling rates are nearly five times higher — and even behind China, where rates are at least 1.5 times greater. However, with stricter regulations and rising public awareness about sustainability, the e-waste sector is poised to attract stronger investor interest and greater capital inflows in the coming years.
*The article is for information purposes only. This is not investment advice.
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