The recycling industry has urged the government to reconsider the 18 percent GST levied on plastic bottles and reduce it to zero to encourage the industry.
Gurashish Sahni, co-founder and COO of ReCircle, said that while India’s Extended Producer Responsibility policy draws inspiration from the EU, it must be tailored to India’s unique realities, especially the critical role of the informal economy, which remains the backbone of high recycling rates.
Urging for the integration of this ecosystem besides adopting digital tools such as IoT, AI and robotic sorting to improve efficiency and traceability, he said at the event to announce the Bharat Recycling Show 2025 and Plastics Recycling Show India between November 13 and 15 in Mumbai.
Sahni critically pointed out that the 18 percent VAT rate on raw materials such as bottles is a significant barrier. If circularity is a national imperative, the tax on recycled materials must be drastically reduced, if not reduced to zero, to create a fair and sustainable environment, he added at the event organized by Media Fusion and Crain Communications.
The industry leaders focused on the unique challenges in India’s path to circularity, especially related to plastics, in a discussion “Unlocking Circular Value: Regulatory and Market Trends in Recycling.”
Taher Patrawala, Managing Director, Media Fusion said high GST rates and fragmented compliance remain critical issues that the expo and summit aim to address by promoting dialogue between policymakers and industry players.
Sandeep Vakharia, honorary secretary of the Bombay Non-Ferrous Metal Association, said recycling copper is crucial for securing metals for alternative energy, easing import burdens and reducing carbon emissions, besides helping India meet its Nationally Determined Contributions (NDC).
While official documents put the Indian economy at $4.3 trillion, the real figure will exceed $5 trillion if this unregistered sector is included, he said.
Vakharia added that integrating this vast informal recycling industry into the formal system and providing education on ESG practices are essential steps to realize India’s full economic potential.
Vakharia added that integrating this vast informal recycling industry into the formal system and providing education on ESG practices are essential steps to realize India’s full economic potential.
Published on October 10, 2025
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