India Budget 2026: Recycling Sector Demands Open Scrap Trade, Duty-Free Imports

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AuthorKavya Nair|Published at:
India Budget 2026: Recycling Sector Demands Open Scrap Trade, Duty-Free Imports
Overview

Recycling industry leaders are urging policymakers to prioritize open trade of scrap and reusable materials in the upcoming Union Budget 2026. They argue that unrestricted cross-border movement is crucial for India's circular economy growth, investment, and sustainability, especially as global protectionism rises. Key demands include duty-free scrap imports to meet manufacturing and decarbonization targets.

Budget 2026: Recycling Sector Pushes for Open Trade

The recycling industry is advocating for Union Budget 2026 to dismantle trade barriers for scrap and reusable materials. Leaders argue that open markets are essential for fostering a robust circular economy, attracting investment, and driving innovation, particularly in the face of escalating global protectionist policies.

Global Context and India's Opportunity

Robin Wiener, president of the US-based Recycled Materials Association, highlighted the critical need for export markets, noting the U.S. generated a surplus of over $22 billion in recycled commodities in 2025. She pointed to the significant growth in U.S.-India recycling trade, which has remained resilient. India is now a major destination for U.S. recycled material exports, valued at $2.3 billion last year.

Challenges and Domestic Potential

Industry representatives, including Amar Singh, secretary general of the Material Recycling Association of India (MRAI), estimate India's circular economy could generate over $2 trillion by 2050. However, they cite domestic challenges like low scrap availability, import dependence, GST issues, and the informal sector's dominance. Sanjay Mehta, MRAI president, emphasized that zero duty on scrap imports is vital for India to achieve its manufacturing and decarbonization ambitions.

Regional Partnerships and Future Outlook

Mir Mujtaba, president of the Bureau of Middle East Recycling, identified a natural synergy between India and the Middle East, combining regional logistics and capital with India's processing expertise. Industry leaders believe Budget 2026 presents a crucial opportunity to align trade, tax, and sustainability policies, positioning India as a global hub in the circular economy value chain.

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