Bengaluru - A new report by Redseer Strategy Consultants reveals that India's mounting electronic waste presents a significant economic opportunity, with an estimated $6 billion potential from recoverable materials through metal extraction.

The study highlights India's position as the world's third-largest e-waste producer, following China and the US. The country's e-waste generation has seen a dramatic increase, doubling from 2 million metric tonnes (MMT) in FY14 to 3.8 MMT in FY24, driven by urbanization and rising income levels. The consumer segment dominates this growth, accounting for 70% of total e-waste in FY24.

"The rising value of metals in e-waste presents a major opportunity for India to enhance recovery efficiency and establish itself as a leader in sustainable metal extraction," said Jasbir S. Juneja, Partner at Redseer Strategy Consultants.

However, current recycling practices face significant challenges:

• Only 16% of consumer e-waste is processed by formal recyclers

• 10-15% remains stored in households

• 8-10% ends up in landfills

• Despite projected 17% CAGR growth in formal recycling by FY35, it will still only handle 40% of India's e-waste

The government has implemented the Extended Producer Responsibility (EPR) framework to address these challenges, evolving from a voluntary program in 2011 to a mandatory system with defined collection targets. However, the framework's effectiveness is limited by low minimum EPR fees and insufficient formal recycling capacity.

The report suggests that strengthening formal recycling networks could reduce India's metal import dependency by up to $1.7 billion while ensuring a steady supply of high-value recycled metals. Juneja emphasized that scaling formal recycling operations, strengthening regulatory enforcement, and incentivizing circular economy practices will be crucial for sustainable economic and environmental benefits.

A notable trend in e-waste generation is the shift in material intensity - while modern appliances are becoming more compact and lightweight, the overall volume of discarded items continues to rise, highlighting the need for more efficient recycling strategies.