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Scaling infrastructure and investment key to India’s circular plastics economy

While PET plastics in India achieve recycling rates of up to 90%, flexible films are recycled at only around 5%. These materials are lightweight, low-value, and complex, making them difficult to recycle economically, despite accounting for a substantial share of plastic waste and environmental leakage.


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Plastic
 
February 10 2026 Mayuri Phadnis
 
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Nivedita Shukla Verma, Secretary, Department of Chemicals and Petrochemicals along with Ravish Kamath and Alok Tibrewala at PlastIndia 2026

India has the potential to significantly accelerate its progress toward a circular economy for plastics, but doing so will require large-scale investment, improved infrastructure, and stronger integration of the informal sector, according to Justin Wood, Vice President for Growth and Engagement at the Alliance to End Plastic Waste.

Speaking about the Alliance’s work and priorities at seminar on sustainability and circular economy at Bharat Mandapam during PlastIndia 2026, Wood outlined how the global nonprofit organization is moving beyond policy discussions to focus on delivering practical, on-the-ground solutions to plastic pollution, with India identified as one of its five priority countries.

Wood said India stands out as a priority market because of both the scale of the challenge and the opportunity for impact. The country generates nearly 60 million tonnes of municipal solid waste annually, including about 10 million tonnes of plastic waste. Of this, approximately 3.5 million tonnes is mismanaged, either through littering or disposal at poorly managed dump sites.

At the same time, India offers a supportive policy environment, Wood noted, pointing to Extended Producer Responsibility legislation, waste management rules, and national initiatives such as the Swachh Bharat Mission. While enforcement varies across states, the policy framework provides a strong foundation for circular economy efforts.

The country’s economic trajectory also supports the case for long-term investment. Rising incomes, improving education levels, and increasing public demand for cleaner cities are expected to drive greater willingness and ability to pay for effective waste management systems, Wood said.

He also highlighted the strength of India’s recycling sector, describing it as entrepreneurial and competitive, though often constrained by limited access to feedstock and capital. The Alliance sees opportunities to help unlock these barriers, as well as to support the adoption of technologies that improve waste sorting, traceability, and recycling efficiency.

A key focus area for the Alliance is the informal sector, which Wood described as the backbone of India’s waste management system. An estimated 1.5 million informal waste pickers play a critical role in collection and recovery, yet many lack access to capital, equipment, and formal systems, resulting in low productivity. Improving working conditions and efficiency within this sector, he said, could have a transformative effect.

 Wood, however, stated that significant challenges remain. Policy enforcement is inconsistent across regions, and waste management infrastructure—particularly sorting infrastructure—is underdeveloped in many cities. Effective recycling, he said, depends on clean and well-segregated waste streams, beginning at the household level and supported by municipal sorting centers and specialized plastic recovery facilities.

Flexible packaging represents another major obstacle. While PET plastics in India achieve recycling rates of up to 90%, flexible films are recycled at only around 5%. These materials are lightweight, low-value, and complex, making them difficult to recycle economically, despite accounting for a substantial share of plastic waste and environmental leakage.

Financial viability remains a further concern. Although EPR mechanisms are intended to fund waste management, Wood said current contribution levels and compliance rates are often insufficient to support sustainable systems. The Alliance provides concessional funding to help launch projects, but its objective is for these systems to eventually operate independently.

From global frameworks to local leadership

While Wood laid out the structural and systemic changes needed to build a circular plastics economy at a national scale, political leadership at the state level is also beginning to frame sustainability as central to industrial growth—particularly in urban centres grappling with mounting plastic waste.

The future of India’s plastics industry, according to Delhi’s Chief Minister Rekha Gupta, must be built on innovation, responsibility, and an uncompromising commitment to sustainability. Speaking earlier at the inauguration of PlastIndia 2026, she urged manufacturers to rethink how plastic is made, used, and reused, calling on the sector to work towards the ambitious goal of recycling 100% of plastic waste.

Sustainability, she stressed, can no longer be a side conversation. It must sit at the heart of the industry’s growth story.

Delhi’s urgency is hard to miss. The national capital generates thousands of tonnes of plastic waste every single day, making disposal and recycling one of its most pressing urban challenges. The Chief Minister called upon industry leaders to become active partners in Delhi’s transition to a cleaner, greener city—through better recycling systems, circular economy models and the development of innovative, eco-friendly materials.

The scale of the industry makes this responsibility even more significant. Valued at $44 billion in 2025, the Indian plastics sector is expected to grow to $47 billion in 2026 and reach $64 billion by 2030, she adds. This growth, according to Gupta, must be aligned with environmental goals to ensure long-term economic and ecological benefits.

She also highlighted the opportunities opening up on the global stage. The Free Trade Agreement with the European Union and the tariff deal with the United States, she noted, are set to unlock new markets for Indian manufacturers—particularly benefiting MSMEs and boosting exports.

Looking ahead, the Chief Minister called for deeper collaboration to transform Delhi into a hub for plastic processing and recycling, powered by innovation and advanced technologies. By developing sustainable products that convert waste into valuable resources, she said, Delhi can lead by example in responsible industrial growth.

“Responsible growth should be our collective vision,” she remarked. “With innovation, recycling and industry participation, Delhi can move towards a greener future while unlocking economic opportunities.”

Ravish Kamath, President of the Plastindia Foundation, PlastIndia 2026 will feature a series of high-impact initiatives aimed at strengthening policy dialogue, global trade, and sustainability. Kamath noted that India’s plastics industry is witnessing strong and sustained growth. Plastics exports are expected to double from $10 billion in 2025 to $20 billion by 2027, driven by rising demand across packaging, automotive, construction, electronics, and healthcare.

Alok Tibrewala, Chairman of the National Executive Committee, PlastIndia 2026, adds that sustainability is not just a theme but the defining feature of the event. Inspired by the Swachh Bharat Mission, he said the exhibition will implement circular economy practices, large-scale recycling initiatives, and sustainability-driven operations across every aspect of its execution.