$6-billion e-waste goldmine: Can India turn its digital dumping crisis into an economic win? – Economy News

In August last year, data presented in Rajya Sabha revealed that the proportion of e-waste recycled in India rose from 22% in 2019-20 to 43% in 2023-24. While the numbers show progress, approximately 57% of e-waste—equivalent to 990,000 metric tonne (MT)—remains unprocessed in the country. This presents a significant economic opportunity in recycling—a $6-billion market in recoverable metals, as per reports—even as the growing e-waste crisis continues to pose a serious environmental and health challenge.

“The e-waste sector is booming, with valuable metals like gold, silver, copper, and rare earth elements embedded in e-waste, especially in batteries. This makes e-waste recycling a critical part of the solution, offering a chance to recover valuable materials, reduce reliance on mining, and foster a circular economy,” says Vikram Prabakar, co-founder and chief technology officer of Recykal, a tech startup headquartered in Hyderabad that is formalising the circular economy in India.

Players like Recykal are focused on addressing the gaps in infrastructure by promoting formal recycling. “Our digital platform connects recyclers and e-waste suppliers, ensuring transparency and accountability throughout the recycling process. Strengthening infrastructure with authorised recycling facilities and adopting safe-handling measures can prevent the release of toxic substances, protect waste pickers, and help standardise pay, improving working conditions for those in the informal sector,” adds Prabakar.

The ever-increasing e-waste in India presents a significant economic opportunity, highlighting the need for a structured and sustainable e-waste management ecosystem, offers Jasbir S Juneja, partner, Redseer Strategy Consultants, in a report released earlier this year. “A robust formal sector can play a key role in achieving necessary targets. Proper recycling and responsible disposal can not only mitigate environmental damage but also unlock economic value through material recovery, job creation, and the development of a circular economy,” he adds.

E-waste and battery recycling represent a $7-10 billion market opportunity in India alone over the next decade, says Rahul Singh, business head of Exigo Recycling, a leading provider of sustainable recycling solutions. “This is driven by an explosion in electronics and EV (electric vehicle) adoption, growing global demand for critical minerals like lithium, cobalt and nickel, push for resource independence and urban mining, regulatory tightening around landfill bans, and carbon neutrality, among others,” he explains.

Exigo, a Central Pollution Control Board (CPCB)-authorised recycler, addresses both e-waste and lithium-ion battery waste challenges. “We operate across collection, dismantling, metal recovery, and circular reintegration. We recycle over 60,000 MT of e-waste annually, besides over 7,300 MT lithium-ion battery recycling per year,” says Singh, adding that the company has registered a compound annual growth rate (CAGR) of 45% over the past three years.

Mounting concern

India is staring at a mounting public health and environmental concern. As per data provided by Union minister Tokhan Sahu in Rajya Sabha on December 16 last year, the country generated 1.75 million metric tonne (MMT) of e-waste in 2023-24, a rise of 72.54% over the 1.01 MMT it produced in 2019-20. 

A report released by Redseer Strategy Consultants earlier this year paints an even grimmer picture, pegging India at the third spot among the largest producers of e-waste globally, trailing only China and the US. As per the report, India’s e-waste generation has surged from ~2 MMT to ~4 MMT between FY14 and FY24—a rise of 100% over 10 years.

E-waste has become one of India’s fastest-growing waste streams, especially in urban areas, says Dr Ruby Makhija, founder of Why Waste Wednesdays Foundation (WWWF), a non-profit organisation dedicated to driving positive environmental change. “India is among the top e-waste generators globally. The concern is very real, as improper disposal of electronic waste releases hazardous substances like lead, mercury, and cadmium, posing serious health and environmental risks. The menace is driven by rapid urbanisation, increasing income levels, shorter product life cycles, the culture of frequent gadget upgrades, lack of consumer awareness about safe disposal methods and gaps in collection,” adds Dr Makhija.

According to the Redseer report, e-waste in India is predominantly generated through two channels—households and businesses. However, the consumer segment is the primary contributor, accounting for nearly 70% of the total e-waste generated in FY24.

Another trend shaping e-waste generation is the shift in material intensity. While appliances are becoming more compact and lightweight, the sheer volume of discarded items is increasing. “Additionally, over time, small appliances like microwaves have become more compact and are now manufactured using lighter materials such as aluminum and steel, replacing the heavier metals such as iron used in older appliances,” says Juneja of Redseer.

The informal sector

Seelampur in east Delhi is a picture of contrasts. Considered India’s e-waste graveyard and one of the world’s largest informal e-waste markets, the neighbourhood deals with over 30,000 tonne of e-waste on a daily basis, as per reports.

Every day, about 50,000 people eke out a living in the market, sifting through heaps of discarded electronic items such as smartphones, computers, printers and refrigerators, and dismantling them, to extract parts like screens and wires and metals like copper and aluminium. These recyclers work for a pittance, not to mention the many health hazards they are exposed to in the process. According to a rough count, there are 322 authorised recyclers in the country. But informal waste handlers flourish nationwide, using methods such as open burning and acid leaching to extract metals and components, which can release hazardous materials. Despite the dubious distinction, Seelampur addresses a significant issue with e-waste from both India as well as abroad. In the absence of an organised system, up to 95% of the discarded electronic items either reaches landfills or informal recyclers in places like Seelampur. 

But herein lies the problem. Despite a robust formal recycling infrastructure being in place, the informal sector is primarily responsible for the persistent low e-waste recycling rate in India, say experts. “While infrastructure for collection, sorting, and recycling is established, the majority of e-waste remains unprocessed due to the informal sector’s dominance,” says Prabakar of Recykal.

Despite the urgent need for structured e-waste management, only 16% of India’s consumer-led e-waste is processed through authorised recycling facilities, says Juneja of Redseer. While awareness is growing, an overwhelming 60-70% of consumer e-waste still flows through informal channels, where unsafe extraction techniques lead to environmental pollution and severe health risks for workers. “Additionally, around 10-15% of e-waste—mainly high-value consumer electronics like smartphones and laptops—remains stored in households, while another 8-10% of e-waste is discarded and ends up in landfills, further reducing overall recycling efficiency. Strengthening formal recycling infrastructure is crucial to tackling these inefficiencies and unlocking the full economic and environmental potential of e-waste management,” adds Juneja.

Policy backlash

In September last year, in a move aimed at formalising the sector and encouraging investment in e-waste management, the Centre set a floor price that electronics makers must pay recyclers. The new rules mandate a minimum payment of `22 per kg to recycle electronics. 

However, several electronics manufacturers, including LG Electronics, Samsung Electronics, Daikin, Voltas and Carrier, have expressed concern and even brought legal suits, arguing that the costs are too high and could have a significant financial impact on their operations. Makers of heavier devices such as air conditioners are likely to be hit hardest because their per-unit recycling cost has risen by a greater amount compared with makers of lighter gadgets like smartphones, as per reports.

In a 380-page court filing dated June 3, which has not been disclosed publicly, Carrier said recyclers were willing to continue their work at the older prices and the government should not interfere in private dealings between companies and recyclers. “The burden of the benefit being given to the recyclers has been put on the producers, which is unfair and arbitrary,” said submissions by Carrier Airconditioning & Refrigeration and reviewed by Reuters.

The core of their argument is that the pricing is not in line with market forces. They have expressed concerns that the new rates are far higher than current market prices—up to 15 times more—making the costs unsustainable for companies. They also argue that the “polluter pays principle” should not place an unfair financial burden on businesses while leaving the issues of informal recycling practices unresolved.

Meanwhile, the Centre has called for the cases to be dismissed, as per reports. In a March 18 submission, the environment ministry urged the judges to dismiss the lawsuits, saying it was “reasonable” and within its powers to fix prices. The ministry said the alternative of letting companies and recyclers determine prices may not account for all costs of environmentally sound waste management. It said it wanted to prevent a “race to the bottom” in pricing, say reports.

“The ‘polluter pays’ principle, EPR (Extended Producer Responsibility), and shared producer responsibility—safeguarding the environment—whose responsibility is it? Are the recycling rates paid by producers globally the same in India, or are they lower? The solutions to these questions lie solely in a collaborative model, which is not currently prevailing,” says Prabakar of Recykal.

Roadmap for the future

Systems like the Digital Deposit Refund System (DDRS) for e-waste can play a vital role in improving recycling rates, says Prabakar. “By integrating a deposit-refund mechanism, consumers can be incentivised to return their used electronics for proper disposal and recycling. This system encourages responsible behaviour and drives higher recycling rates, all while ensuring that the process is tracked digitally for transparency and accountability,” he explains.

Furthermore, embracing innovative business models like Product-as-a-Service (PaaS), Repair-as-a-Service (RaaS) can help reduce overall waste generation by shifting from ownership to usage. “We also need advanced data protection measures, such as certified e-waste recycling providers that offer secure data wiping services. Ultimately, the push towards circularity in electronics will require global partnerships to drive innovation, enhance transparency through digital tracking, and improve accountability across the entire value chain,” adds Prabakar.

However, according to Singh of Exigo, challenges remain. “Some of these challenges are access to consistent feedstock (collection remains the weakest link), low public awareness and engagement, high initial capex for compliance-led infrastructure, fragmented policy implementation across states, and limited R&D in efficient, scalable recovery technologies. Exigo is committed to solving these constraints through joint ventures (India-US, India-Europe), decentralised collection hubs, second-life solutions, and integration of informal workers,” he adds.

The way forward lies in sensitising and educating people, translating awareness to action through large-scale awareness campaigns, strengthening formal collection and recycling systems, incentivising safe disposal, empowering informal workers through training and formalisation, says Dr Makhija of WWWF. “Bridging the gaps between producers, consumers, collectors, urban local bodies (ULBs) and recyclers could be the way forward. NGOs working at the grassroots level can partner with recyclers and ULBs to give great results in this direction,” she adds.

Dr Makhija’s foundation works actively to build regular and structured awareness campaigns, set up collection drives (recycle melas), and partner with authorised recyclers to ensure responsible e-waste recycling. “The Municipal Corporation of Delhi (MCD) and New Delhi Municipal Council (NDMC) are fully supporting these drives. We also encourage corporates, RWAs and institutions to establish continuous e-waste collection channels. RWAs have been forthcoming and so are schools, colleges and corporates,” she adds.

As India continues its digital expansion, the need for a robust e-waste management system has never been greater, says Juneja of Redseer. “By leveraging proactive strategies and collaborative efforts, we can transform India’s e-waste sector into a sustainable, economically viable ecosystem that supports long-term environmental and business growth,” he adds.

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