Context: India’s new e-waste recycling regulations, aimed at formalising the sector and enhancing environmental sustainability, have triggered strong opposition from several global electronics manufacturers including Daikin, Hitachi, and Samsung.
Relevance of the topic:
Prelims: Key facts related to e-waste in India.
Mains: Issues related to e-waste recycling in India.
Current Status of E-Waste in India:
- India is the third-largest e-waste generator globally, after China and the US. In FY24, the country generated 1.7 million tonnes of e-waste, more than double the amount from six years ago.
- Despite rapid growth in consumer electronics (estimated at $62 billion in 2025), only 43% of the country's e-waste is officially recycled. Comparatively, the US and China have significantly higher recycling rates.
- At least 80% of the sector comprises informal scrap dealers, whose methods can pose environmental and health risks.
What is E- Waste?
- As per the E-Waste (Management) Rules, 2022, e-waste is defined as: electrical and electronic equipment, including solar photovoltaic modules or panels or cells, whole or in part, discarded or rejected from manufacturing, refurbishment and repair processes.
- Examples: Large household appliances like Refrigerators, air conditioners, washing machines ; Consumer electronics like Televisions, computers, laptops, smartphones etc.
- E-waste can contain material of economic benefit such as plastics, iron, glass, aluminum, copper, silver, gold, platinum, palladium and indium etc. and rare earth elements.
- E-Waste contains hazardous substances such as Lead, Cadmium, Mercury, Hexavalent Chromium, Polychlorinated Bi-phenyls (PCBs), Brominated Flame Retardants (BFR), etc.
- Management of E-Waste in India is regulated under E-Waste (Management) Rules, 2022 under the Environment Protection Act, 1986.
India’s E-Waste Regulations
- Concerned about poor waste processing practices, the Indian government has introduced a minimum floor price for recycling electronic goods to incentivise formal recycling.
- The rules mandate: Rs 22/kg for consumer electronics and Rs34/kg for smartphones.
- The Policy aims to:
- Discourage environmentally harmful practices in the informal sector, which handles over 80% of India’s e-waste using dangerous techniques like acid leaching and open burning.
- Incentivise formal recycles by ensuring a guaranteed revenues for processing e-waste.
- Strengthen Extended Producer Responsibility (EPR) and promote circular economy.
Firms’ Response
- The firms are urging environment officials to abandon the approach, with four companies suing the Central government over the measures they say will heighten compliance woes and increased costs will cascade into higher consumer prices unsettling businesses
- For example, Hitachi stated that its recycling cost has risen nearly fourfold, from Rs 6/kg to Rs22/kg, translating into millions of dollars in additional expenses.
Government’s Response:
- The government has maintained that it was ‘reasonable’ and within its powers to fix prices. Allowing companies and recyclers to set their own prices could lead to cost-cutting and unsafe practices.
- There are currently 322 authorised recyclers in India. The government believes the floor price will help develop scientific recycling infrastructure and attract more investments in the sector.
The stand-off marks the latest chapter in foreign companies’ battles with India over what some perceive as protectionist policies and shifting regulatory goal posts.