New Delhi, Feb 21 (.) Structural reforms are essential to bring India’s fragmented scrap and recycling markets into the mainstream economy, industry leaders and policymakers said at a national conclave organised by the PHD Chamber of Commerce and Industry in association with MetalX here.
The conclave on ‘Reimagining India’s Scrap and Recycling Market’ brought together government officials, regulators, public sector enterprises, recyclers, financiers, and technology providers to deliberate on improving transparency, governance, and institutional trust across the recycling value chain.
Dr Jatinder Singh, Deputy Secretary General, PHDCCI, said nearly 60-70 per cent of the scrap market operates informally, with contamination levels of 25-30 per cent and price volatility affecting MSMEs.
He stressed the need for market formalisation, digital transformation, better access to finance, and stronger supply chain transparency. Referring to the union Budget 2026, he said incentives and duty waivers could help position India as a global recycling hub with an estimated USD 17 billion opportunity under Swachh Bharat 2.0.
Vijay Sharma, Chair, Minerals & Metal Committee, PHDCCI, said scrap management is now a strategic business issue linked to competitiveness and sustainability. He noted that one tonne of recycled steel saves 1.1 tonnes of iron ore and 630 kg of coking coal, while reducing emissions by nearly 28 per cent.
He identified key challenges, including fragmentation, lack of standardisation, price volatility, technology and capital gaps, and a trust deficit. He called for recognising scrap as a strategic commodity and promoting scrap processing clusters, digital infrastructure, and ESG-linked financing.
Alok Sahay, Secretary General of the Indian Steel Association, said India’s scrap-based steel production stands at 22 per cent, compared to 70 per cent in the US and 55 per cent in the EU. With steel output rising from 25 million tonnes to 165 million tonnes and targets of 300 million tonnes by 2030, he said, scrap will be strategically important.
He also highlighted India’s dependence on about 8 million tonnes of scrap imports annually and warned of potential supply risks amid possible export restrictions by OECD countries.
Dr Ajay Mathur, former Director General of the International Solar Alliance, said scrap should be viewed as “urban ore” rather than waste. He pointed out that nearly 90 per cent of recycling takes place in informal and low-recovery conditions.
He called for formalising informal collectors, building digital systems for traceability and pricing transparency, and enabling policy measures such as recycling parks and minimum recycled content mandates.
The event also marked the launch of MetalX, described as India’s first institutionally governed neutral digital marketplace for scrap, aimed at enabling transparent price discovery, standardised trade workflows, and wider participation from MSMEs and corporates in the recycling ecosystem.
. SAS PRS