India is embarking on transformative economic initiatives as it prepares for the Union Budget 2025-26, focusing on sustainability, resource efficiency, and self-reliance. With over 3.2 million metric tonnes of e-waste generated annually, making it the third-largest producer globally, the government is facing significant pressure to enact forward-thinking policies. Industry leaders are advocating for strategic measures such as the Production-Linked Incentive (PLI) scheme for the recycling sector, addressing the recent tax hike on waste management, and increasing investments in advanced recycling technologies.
With e-waste generation surging by 73% between 2019 and 2023, India stands at a pivotal moment. Nitin Gupta, CEO and Co-founder of Attero, emphasized this urgency, stating, "India stands at a pivotal moment for recycling, driven by the surge in e-waste generation, which has increased by 73 per cent between 2019 and 2023." Gupta advocated for policies to promote recycling and domestic production, which are necessary to achieve resource self-sufficiency. He added, "This includes focused efforts on salvaging high-value materials like lithium, cobalt, and nickel from end-of-life products such as EV batteries."
The significance of this budget extends beyond economic numbers; it aims to empower marginalized communities. Finance Minister Nirmala Sitharaman highlighted the government’s commitment to supporting women, farmers, youth, and the poor through various schemes. "This budget is about empowering the marginalized by meeting the aspirations of the GYAN (Garib, Yuva, Annadata, and Nari shakti)," she stated during her budget presentation.
One key measure proposed involves easing access to financing for women and other underrepresented groups, with plans to offer loans of up to Rs 2 crore to first-time entrepreneurs. This initiative aims to uplift 5 lakh women, SCs, and STs, marking significant strides toward enhancing economic participation among these segments.
Concerns surrounding recent tax revisions have emerged as potential hindrances to growth within the waste management sector. Nimit Aggarwal, Founder and Managing Director of EcoEx, addressed these challenges, urging the government to reconsider the drastic hike of GST from 5% to 18% on waste management services. He stated, "We urge the government to roll back the GST hike from 5% to 18% on waste management." He also pointed to the compliance complexity introduced by the reverse charge mechanism, which has hampered small and medium enterprises’ efforts to innovate.
To mitigate dependency on imports and build on the newly launched Critical Minerals Mission, Abhay Deshpande, Founder and CEO of Recykal, underscored the necessity of bolstering domestic infrastructure for recycling. He remarked, "With India heavily reliant on imports for minerals, strengthening domestic recycling infrastructure has become strategic necessity." Deshpande called for reduced GST rates on both plastic waste and recycling machinery, advocating for incentives to boost recycling efforts.
The proposed initiatives within the Budget 2025-26 have far-reaching implications. With global demand for lithium, cobalt, and nickel projected to rise remarkably, securing domestic supply chains has never been more imperative for India's economic resilience. By effectively integrating extended producer responsibility mechanisms with enhanced recycling capabilities, India can strive to establish itself as not just a consumer but also as a leader in resource efficiency and clean energy transition.
The economic strategies laid out are part of broader structural reforms aimed at enhancing India’s global competitiveness. The Finance Minister’s budget presentation covered six key domains: taxation, power, urban development, mining, financial sector, and regulatory reforms, which are expected to stimulate growth across various sectors. These transformative actions are deemed necessary for addressing the diverse needs of the population.
This upcoming era will likely see India transition toward sustainable economic practices, reinforced by well-planned government initiatives aimed at alleviating the burdens faced by key communities and industries. The Union Budget 2025-26 is set to be pivotal, enabling the establishment of India as both an economic powerhouse and leader on the global stage.