Mehta: we will continue to play an active and constructive role 
Interview

Journey to a circular economy

Material Recycling Association of India (MRAI) is the voice of the Indian recycling industry. MRAI’s role is to liaise with the government bodies and the stakeholders in India. It has been instrumental in shaping major policies and frameworks with the respective ministries. With extensive experience in the recycling trade in India and international markets, Sanjay Mehta, president, MRAI, shares his mission and plans with S.M. Boothem

S M Boothem

What are the activities, contributions and benefits that accrue from MRAI?

MRAI is the apex national body representing India’s recycling and circular economy sector, encompassing metals (ferrous & non-ferrous), paper, plastics, e-waste, tyres, batteries, textiles, used oil, solar and C&D waste. With 1,800+ members and a network of 25,000 MSMEs, the industry provides over 2.5 million jobs nationwide, including 30 per cent women workforce participation. MRAI works closely with NITI Aayog, MoEFCC, the ministries of steel, mines, as also commerce & industry, contributing to key national frameworks, such as the steel scrap recycling policy, vehicle scrappage policy, circular economy mission and EPR regulations. In alignment with the prime minister’s vision MRAI has been instrumental in promoting sustainable industrial growth and resource efficiency.

What is the market size of recycling?

The concept of circular economy revolves around a restorative and regenerative system design. It aims to eliminate the ‘end-of-life’ phase for materials collectively reaching a market size of about $20 billion by 2030, according to the Avendus Report on Recycling waste to wealth.

What are the industry’s challenges?

Challenges are many, and one of the major ones that the recycling industry in India faces is with GST reduction, primarily due to the high and uniform 18 per cent tax rate on recycled materials, which needs to be reduced to 5 per cent. High taxes push informal operators to avoid the formal GST system, as paying the 18 per cent rate is financially unviable for them. We are pushing for the reduction. Lack of advanced technology and inadequate infrastructure is also hindering our industry, and we urge the government to consider recycling-linked incentives and viability gap funding for the capex. The association is exploring solutions like cluster development with a common treatment facility centre to transform the informal into formal cycling. The other important area MRAI advocates for is the creation of a single, dedicated ministry for the entire recycling sector, which will address all our issues.

Tell us about your upcoming major event on recycling?

MRAI’s upcoming flagship event is the International Material Recycling Conference (IMRC) 2026, the concept of which has grown over the past decade into Asia’s largest and most influential platform for recycling, sustainability and circular economy dialogue. IMRC will be attended by more than 3,000 delegates and 230 exhibitors from 40 countries, which is scheduled for 20-22 January 2026, in Jaipur. IMRC 2026 will discuss all the challenging issues faced by the recycling industry in the presence of policymakers, since it has been widely recognised as the premier platform that embodies the 6R Principles – reduce, reuse, recycle, recover, redesign and remake.

What do you foresee for India from the industry?

The association remains committed to supporting the ministry in implementing the action plans, monitoring progress and ensuring that the recycling industry continues to play a pivotal role in India’s transition to a circular economy. It will be a transformative moment for India’s recycling and circular economy movement, which will help the Indian recycling fraternity – to reaffirm India’s global leadership in sustainability and green growth; inspire confidence, investment and innovation across the recycling ecosystem; accelerate formalisation and empowerment of the informal workforce; strengthen India’s alignment with Mission LiFE, Net Zero 2070 and Vision 2047; and showcase India’s leadership in resource efficiency, decarbonisation and circular manufacturing.

MRAI also maintains formal partnerships with leading international organisations, including BIR (Brussels), ReMA (the US), BMR (Dubai), CMRA (China), EuRIC (Europe) and BMRA (the UK). These collaborations strengthen India’s global positioning in recycling, enabling technology transfer, investment promotion and best-practice adoption.

What is the road ahead for MRAI?

The association will continue to play an active and constructive role in the functioning of various committees. It provides vital industry data, policy recommendations and field insights across key sectors.  A few areas of development for the industry include the establishment of circular economy parks across India, a push for zero import duty on metal scrap, EPR frameworks with online trading systems, to name a few.