As India prepares for the Union Budget 2026, the recycling industry has put forward clear expectations, calling for policy support that strengthens the country’s circular economy ambitions. At the heart of these demands is the need for an open and predictable scrap trade regime, along with caution against tariff measures that could disrupt material flows and raise costs for recyclers.
Industry stakeholders argue that recycling depends heavily on the steady availability of quality scrap, both domestic and imported. Restrictive trade policies or higher import duties on scrap materials can limit access to essential inputs, making recycling operations more expensive and less competitive. According to industry representatives, free movement of scrap across borders helps maintain supply stability, encourages investment in advanced recycling technologies, and reduces dependence on virgin raw materials.
The sector has also flagged concerns over tariffs and high indirect taxes, warning that such measures may unintentionally weaken the circular economy. Recycling works on thin margins, and increased costs due to duties or complex compliance requirements can push legitimate players out of the formal system. This not only affects business viability but also undermines environmental objectives by encouraging informal and unregulated recycling practices.
Another key expectation from Budget 2026 is rationalisation of taxes on scrap and recycled materials. The industry believes that lower tax rates would bring more participants into the organised sector, improve traceability, and support better environmental standards. Simplified regulations and clear guidelines for scrap imports are also being sought to reduce operational delays and uncertainty.
Recyclers have emphasised that a strong circular economy aligns with India’s broader goals of sustainability, resource efficiency, and reduced carbon emissions. By promoting recycling and reuse, the country can cut down on landfill waste, lower industrial pollution, and conserve natural resources. Supportive budgetary measures, they argue, would help scale up recycling capacity and create green jobs across the value chain.
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