The India Budget 2024-2025 sets a roadmap aimed at transforming India into a prosperous and developed nation by 2047. The key focus areas are reducing poverty, youth empowerment, farmer welfare, women empowerment and sustainable development. Committed to achieving Net Zero by 2070, the budget promotes renewable energy initiatives, including viability gap funding for wind energy, setting up coal gasification capacities, and supporting the e-vehicle ecosystem. 

Significant allocations have been made for the Ministry of Defence and the Ministry of Agriculture and Farmer's Welfare. Major schemes like Ayushman Bharat, the National Green Hydrogen Mission, and the Production Linked Incentive Scheme have seen increased funding.

While presenting the Union Budget for 2024-25 on July 23, country’s Finance Minister Nirmala Sitharaman announced initiatives to enhance water supply, sewage treatment, and solid waste management in 100 large cities. She said that these projects aim to create bankable solutions, utilising treated water for irrigation and replenishing local water bodies. “In partnership with state governments and multilateral development banks, we will promote water supply, sewage treatment, and solid waste management projects and services for 100 large cities through bankable projects,” said Sitharaman.

Critical Mineral Mission
The government will introduce the Critical Minerals Mission to strengthen the nation's resource security. This initiative focuses on boosting domestic production and recycling of critical minerals and securing their acquisition from international markets. As part of this mission, customs duties on 25 critical minerals have been waived, with a reduction in the basic customs duty (BCD) on two additional minerals.
The Finance Minister, in her Budget speech, said, “We will set up a Critical Mineral Mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. Its mandate will include technology development, a skilled workforce, an extended producer responsibility framework, and a suitable financing mechanism.”
Highlighting the crucial role of minerals such as lithium, copper, cobalt, and rare earth elements, Sitharaman noted their significance in sectors including nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics. These minerals are essential components in almost all electronic gadgets – ranging from laptops to electric cars.  

Implementation of EPR
The Critical Minerals Mission will involve several strategic components including the development of new technologies, promotion of recycling and implementation of an Extended Producer Responsibility (EPR) framework, holding producers accountable for the end-of-life consequences of their products.  
The budget also placed a strong emphasis on sustainability through various initiatives such as incentives for green manufacturing and waste reduction initiatives aimed at fostering eco-friendly manufacturing practices. 

What does the industry feel about these provisions? Let’s find out
Shailendra Singh, Founder & CEO, SustainMantra, pointed out that specific mentions of waste management and the circular economy are noticeably absent. However, the announcements related to rooftop solarisation, the development of a taxonomy for green finance, and carbon emissions reduction in hard-to-abate sectors are good steps and signal the government's intent to strengthen India's commitment to the Paris Agreement and its Nationally Determined Contributions (NDCs), he said. 

“I see these announcements as a beginning and a show of intent of the Government, and expect several regulations to follow and seep into the compliance regime applicable to Corporates.” He stressed that significantly more effort is needed to build widespread awareness and integrate circular economy principles across various sectors. “One crucial step could be the formation of a dedicated committee comprising representatives from various ministries, so that a concerted and coordinated effort can be made by the government to further the circular economy.” 

Shekar Prabhakar, Co-founder & CEO of Hasiru Dala Innovations, shared a cautiously optimistic view. He noted the excitement surrounding the Finance Minister's statement about promotion of SWM projects in 100 large cities through bankabe projects. This announcement saw a rise in stocks of companies like Antony Waste. However, there are loose ends. Prabhakar pointed out several uncertainties. He said, “There is no clarity on definition of large cities, whether there would be Central Government funding for the same as I couldn’t find a budget allocation for SWM for such cities and what really are bankable projects.” The concept of bankable projects implies self-sustainability, but the means to achieve this—whether through higher SWM cess on property tax, user fees based on the "polluter pays principle," private sector participation, or inclusion of informal waste workers—remain unclear, he said.  

The budget allocation for the Swachh Bharat Mission remains at Rs 7,192 crore, consistent with the previous fiscal year. This allocation is perhaps aimed at maintaining Open Defecation Free (ODF) status and enhancing waste management in rural areas. “However, there is no detailed breakdown of funds between ODF, SWM, and Liquid Waste Management (LWM), raising questions about the seriousness of the government’s commitment to comprehensive waste management in rural areas.” 

“So far, Swachh Bharat Mission’s primary focus has been ODF. I am really hoping that they go beyond just allocating Rs.20 lakhs for building composting and dry waste sorting sheds, or buying trucks but look at SWM at a programmatic and operational level bringing in models that sustain working with a combination of user fees (polluter pays principle), SBM Grameen grants, and some revenue from recyclables.” This would ensure functional and sustainable waste management infrastructure, he opined.

The budget proposes raising the Basic Customs Duty (BCD) on non-biodegradable PVC flex banners from 10% to 25%. While this measure is welcome, it may not be sufficient. “PVC flex banners are non-biodegradable and hazardous for environment and health.” Hence, a complete ban on imports could have a more substantial impact on encouraging sustainable alternatives, he said.

The budget introduces incentives for green manufacturing, including financial support for investments in renewable energy, energy-efficient technologies, and waste reduction. Prabhakar noted that the specifics of these measures are yet to be detailed. It is essential that the government follows through with substantial financial commitments to ensure these initiatives are more than just token gestures, he added.

Commenting on whether the budget presented any opportunities for businesses and entrepreneurs in the waste management and recycling sector, he said, “Reuse could be a good opportunity as we currently don’t have the collection, brand level sorting and sanitization processes and infrastructure in place. If SBM Grameen has some serious allocation of funds and if there is political will at Panchayat Raj department-level focus on the ground with state governments, there could be an opportunity for a new breed of waste management companies focused on new hub and spoke models to address the rural waste management challenges.”

If the government enforces the minimum recycled plastic content of 30% from FY 25-26, the market for plastics recycling could expand significantly. This would benefit the entire waste management value chain, provided inclusive and effective operating models are implemented, he pointed out. 

Commenting on the critical mineral mission, Prassann Daphal, CEO, Recyclekaro, said, “The government's announcement of a 25% waiver on customs duty for nearly 25 critical minerals is poised to drive demand across various renewable sectors, including energy storage solutions, electric vehicles (EVs), high-tech electronics, defense, and space. This initiative will bolster the refining and processing of these minerals, strengthening a resilient supply chain ecosystem.  

According to Sachin Sharma, Founder and Director, GEM Enviro Management Limited “The recent budget marks a significant advancement in the waste management sector, particularly in tackling e-waste and plastic waste. By emphasising the recycling of critical minerals, the budget aims to reduce our reliance on imports. Key initiatives include technological upgrades, workforce development, and the establishment of an extended producer responsibility framework with appropriate financing. However, building a robust supply chain and fostering effective connections between recyclers, manufacturers, and waste producers remains crucial. The budget's focus on sustainable growth and the promotion of a circular economy highlights a strong commitment to long-term environmental stewardship and resource efficiency." 

Iram Maimuna, Founder-Director, E-Waste Social Pvt Ltd, said, “The Union Budget 2024's focus on waste management and the circular economy is promising. Strengthening Extended Producer Responsibility (EPR) policies encourages sustainable practices. Additionally, supporting green energy initiatives and fostering public-private partnerships can address waste challenges effectively. These measures set a strong foundation for sustainable growth, but effective implementation and public participation are crucial.” While the measures provide a strong foundation for promoting a circular economy, their adequacy will depend on effective implementation, inclusion of the informal sector, and active public participation, she added.