India’s electronics sector has seen impressive growth in the past few years, surging from approximately US$48 billion in the financial year (FY) 2016–17 to around US$101 billion in FY 2022–23. This remarkable rise is largely fueled by the booming mobile phone manufacturing and assembly operations, positioning India as a serious global contender in the electronics value chain. Despite these advancements, sustainability and supply chain challenges loom large. With the Indian government aiming for a US$500 billion electronics production target by 2030, there’s an estimated need for US$150 billion in investments to create a robust ecosystem for components and subassemblies—many of which rely on imported rare earth elements and critical minerals.
The sustainability concerns regarding e-waste accumulation present yet another challenge. The solution may lie in embracing a circular economy model that not only addresses e-waste management but also strengthens local ecosystems. Interestingly, while electronics output burgeoned by nearly 30% between FY 2019–20 and FY 2022–23, the growth in rare earth imports was a moderate 5.2%. This suggests either a certain level of material efficiency or a potential over-reliance on existing stockpiles.
With India’s limited capacity for domestic extraction and processing of rare earths, dependence on imports—primarily from China—raises red flags about resilience and autonomy in supply chains. To counter these risks, various government policies have fielded interventions. For instance, the Production-Linked Incentive Scheme aims to encourage domestic value addition in the electronics sector. Additionally, recent tariff rationalisations protect local manufacturers from foreign competition, particularly boosting Micro, Small, and Medium Enterprises (MSMEs) through targeted credit, skill development, and technology initiatives.
Yet, the stark truth is that India’s e-waste generation has reached alarming proportions. In the fiscal year 2021-22 alone, India produced around 1.6 million metric tonnes of e-waste, making it the third-largest producer globally. This figure is projected to skyrocket to 5 million tonnes by 2030. Shockingly, despite the rapid growth in electronics manufacturing, only about 5% of this e-waste is recycled through formal channels, while the informal sector manages around 90% of collection and recycling, leading to significant environmental and economic losses.
Improper e-waste disposal poses an environmental risk and a missed economic opportunity. For instance, one tonne of computer scrap can yield more gold than 17 tonnes of gold ore, indicating a potentially lucrative source of materials if effectively harnessed. Globally, the improper recycling of e-waste results in a staggering loss of $62 billion in valuable metals each year.
Adopting a circular economy framework could help shift the paradigm. Imagine a scenario where devices are built to last longer, featuring modular components that can be replaced instead of discarded. Picture a network of refurbishers who breathe new life into old gadgets and advanced recycling facilities equipped to extract reusable materials. Countries like Japan and various EU members are already reaping the benefits of implementing such systems.
India has made strides towards formalising e-waste regulations, primarily through the Extended Producer Responsibility (EPR) framework. Yet, obstacles remain. Authorized recyclers often provide lower prices for e-waste compared to informal handlers, who operate outside environmental safeguards and can offer better value. This creates a disincentive for formal compliance, perpetuating unsafe practices. Currently, around 31% of consumer e-waste bypasses the scope of existing EPR coverage.
India’s informal sector processes approximately 95% of e-waste, often without proper safety measures or social protections for workers. This unregulated environment poses risks not just to the workers but also undermines the potential for material recovery in a safe and controlled manner. Recognising and formalising the efforts of micro-entrepreneurs in this field is crucial for a more sustainable approach.
To build an effective and inclusive e-waste management system, it is essential to blend the informal workforce with formal channels. Initiatives, such as those undertaken by social enterprises like Karo Sambhav, show how informal operators can be integrated into formal systems. There is a need for actionable policies that focus on capacity building, training, financial support, and simplified registration for micro-enterprises involved in e-waste management.
The push for circularity must also extend to consumer behaviour. Individuals often hoard or improperly discard obsolete electronics, contributing to the waste crisis. Public campaigns designed to change attitudes towards e-waste — similar to initiatives like the Swachh Bharat Mission — can make a difference. Tech companies could incentivise returns of outdated devices with discounts, while educational institutions might offer workshops teaching the "right to repair" philosophy, instilling a sense of responsibility among future consumers.
As India anticipates consuming 15 billion tonnes of raw materials annually by 2030, with e-waste expected to double, this moment presents both a crisis and an opportunity. Recovering materials from discarded electronics will not only alleviate pressure on raw resource demands but will also significantly cut emissions related to material extraction and refining.
Implementing an effective circular economy in electronics can mitigate import dependence, foster sustainable employment in green sectors, and align with India’s commitment to climate objectives. The E-Waste Management Rules (2022) aim to ensure producers recycle up to 80% of their e-waste by 2028. Achieving such ambitious targets necessitates further integrating informal collectors into authorised recycling pathways.
A strategic emphasis on capacity building and generating support for eco-friendly technologies will be vital. Consumer awareness and policy support can help scale promising startups, such as Attero Recycling, which utilise innovative techniques for material recovery.
In summary, India stands at a pivotal crossroads. By reevaluating its approach to e-waste management and embracing a circular economy, the nation can lay the groundwork for a more sustainable and efficient electronics sector, ultimately positioning itself as a leader in this crucial industry. Through inclusive initiatives, public awareness campaigns, and robust recycling systems, India can transform its challenges into opportunities and make significant strides toward its US$500 billion electronics manufacturing goal.
