Integrating the informal sector with formal recycling systems and improving collection efficiency are crucial for sustainable e-waste management, writes Priyanka Bhattacharya.

The policies are in place, and the authorised recyclers are spread across the country, yet India is grappling with the escalating electronic waste management crisis. Now the third-largest generator of e-waste globally after China and the US, India produced approximately 1.751 million metric tonnes of e-waste in 2023-2024, seeing a staggering 73% increase over the last five years. This surge is fueled by accelerated digitalization, shorter device lifespans, and a growing appetite for consumer electronics.

“The biggest contributor to e-waste in India is computer equipment mainly desktops, laptops, and servers accounting for nearly 70% of the total e-waste. These devices become outdated quickly due to rapid tech upgrades, short lifespans, and frequent corporate replacements, making them the largest chunk in India’s e-waste pile. In 2023, India generated approximately 4.1 million metric tonnes of e-waste, accounting for about 6.5% of global e-waste according to market data. So, India’s e-waste recycling market presents a $6 billion economic opportunity,” informs Henik Gala and Shreyas Jalapur, Founders of Scrapji, a Mumbai-based waste management and recycling company. 

E-waste management in India faces significant challenges, characterized by a large informal sector handling a substantial portion of the generated waste, leading to environmental and health risks. While the government has implemented policies and regulations, including the E-Waste (Management) Rules, 2022, and Extended Producer Responsibility (EPR), the informal sector’s dominance and inadequate infrastructure hinder effective management. 

Talking about the state of e-waste management in India, ALN Rao, Head of Circularity, Recykal says, “India’s e-waste management ecosystem is at an inflection point—structured yet underutilized. Despite a 72.5% rise in e-waste over five years, the formal recycling rate reached only 43% in FY 2023–24. This is a significant leap from 22% in FY 2019–20 but still lags behind more integrated models in APAC or the UAE. Countries like Singapore and South Korea have achieved higher compliance through unified collection mechanisms and strict enforcement. In India, while infrastructure and regulations exist, it’s the informal sector dominance and low consumer engagement that limit scalability. We’re working to bridge this gap through technology-driven platforms, formalizing operations, and offering traceability, which are essential for global parity.”

Challenges that face the e-waste management sector

The biggest challenge is the lack of awareness about disposal of e-waste. Most of the India users tend to discard electronic devices and appliances without recognizing the environmental impact of their actions; or knowing that secure, sustainable disposal options exist. E-waste disposal, especially computers and mobile phone, takes a hit due to the user’s fear of data breach, lack of access to convenient drop-off points and awareness about the right set of authorised recyclers.  

According to Rohan Massey, Lead – E Waste, Batteries & Refurbishment, Saahas Zero Waste, despite India’s robust e-waste management policy since 2011, the sector lacks the maturity compared to other countries because of the absence of full-scale implementation of the policies, proper infrastructure and monitoring of the e-waste management process. “Our recycling rates are extremely low compared to the other countries and the lack of monitoring and strict implementation is majorly a cause for this. Here the mindset is more towards doing for the sake of doing it while other countries invest heavily to ensure output is available and we are mainly limited by the informal market,” he adds. 

The prominence of the informal sector in e-waste management is another major issue that the sector is reeling under. Data shows that today 95% of e-waste is being handled by the informal sector. This poses a significant risk due to unsafe practices and lack of proper disposal and recycling policies. In fact, it was reported that in 2023-24 only 43% of e-waste was recycled, while majority was left untreated filling up dump yards. This is because India has limited infrastructure for large-scale e-waste management, with few government-approved recycling centres, and limited uptake of co-funded grant schemes for building capacity. Gala of Scrapji says that on average, about 95% of e-waste is recyclable, and only 5% is non-recyclable which usually include contaminated plastics with hazardous additives, thermoset plastics that can’t be remelted, some adhesives, coatings, or insulation materials. “Unsafe recycling practices by the informal sector leads to environmental pollution, including air and water contamination, and health hazards for workers,” adds Jalapur. 

“Formal recyclers use certified facilities to safely extract metals and dispose of hazardous components, while the informal sector often resorts to unsafe methods like open burning. While 43% of the reported e-waste is now recycled formally, the actual rate is likely lower due to underreporting and informal handling,” explains Rao. 

Recycling pricing protests

Another issue that has cropped up recently is that electronics manufacturing firms are protesting the Indian government’s e-waste pricing mandate. Big appliance firms like Daikin, Samsung, and Hitachi are fighting against the increase in e-waste tariffs that they need to pay to recycle air conditioners, refrigerators, TVs and other appliances. According to a Reuters report, the electronics giants are urging environment officials to abandon the approach, with four companies protesting over the measures they say will heighten compliance woes and unsettle businesses. Concerned about poor waste-processing practices, the Indian government in September 2024 set a floor price that electronics makers must pay recyclers, to formalise the sector and encourage investment in e-waste management. 

The new pricing mandates a minimum payment of INR 22 (25 US cents) per kg to recycle consumer electronics and INR 34 rupees per kg for smartphones. This hits the electronics manufacturers in the country in a big way since it was found that earlier these players were paying around INR7 per kg. A report by research agency RedSeer shows that despite the price rise, India’s recycling rates are still low compared with the US, where they are up to five times higher, and China, where they are at least 1.5 times higher. The makers of white goods like ACs and refrigerators are unhappy as they are the hardest hit by the recycling cost. They claim that the government should allow the rates to be decided between the manufacturer and the recycler. 

However, the Indian government has justified the rise in recycling costs by suggesting that this will enable the recyclers to invest in better recycling technologies and processes. The government has identified 322 authorised recyclers in the country, and they are happy with the change in rates. “The government has taken encouraging steps by strengthening EPR norms, introducing recycling fee frameworks, and investing in awareness. But support must evolve from policy to implementation. For example, while a flat INR22 per kg fee was introduced for recyclers, it is being contested by producers. A collaborative model, one that includes recyclers, producers, digital enablers like Recykal, and policymakers, must merge to drive shared accountability and bring transparency,” says Rao. 

Need for better government participation

The E-Waste (Management) Rules, 2022, and EPR, which is a key feature of the rules, aim to regulate e-waste management, but challenges remain in effective implementation and enforcement. Integrating the informal sector with formal recycling systems, improving collection efficiency, and ensuring proper treatment of hazardous materials are crucial for sustainable e-waste management. Massey of Saahas Zero Waste feels that government needs to support the cause of e-waste by improving infrastructure and implementing and monitoring the setup. “The rules are really good, futuristic and comprehensive, but without proper implementation there is a void that never gets filled. The major issue is every stakeholder sees this only as a cost, but no one considers the environmental and social impact. When the awareness is given right all the issues will be sorted, and we can see slow change but positive change,” he says.