Mumbai: India’s plastic recycling industry must speed up automation and align policies to stay globally competitive, said Mr. Sushil Aggarwal, Chairman of AVRO India Limited.
He warned that structural inefficiencies are limiting the sector’s ability to grow at scale.
As global brands tighten sustainability standards and traceability rules, demand for high-quality recycled plastics is rising. But the industry continues to face challenges. These include fragmented scrap collection systems, inconsistent raw material quality, semi-mechanised operations and tax-related hurdles.
A large part of the recycling capacity still depends on partly mechanised systems. This affects contamination control, product consistency and traceability. These standards are increasingly mandatory for export-focused supply chains and institutional buyers.
AVRO India Limited has called for a shift toward automation-led processing and advanced sorting technologies. It has also urged the creation of structured scrap sourcing systems and stronger partnerships between corporates and recyclers to improve efficiency and attract investment.
Speaking on the industry’s outlook, Mr. Sushil Aggarwal, Chairman and Whole-time Director, AVRO India Limited, said:
“India’s plastic recycling sector cannot compete globally without automation and disciplined process engineering. As sustainability standards rise, consistency, traceability, and quality assurance become non-negotiable. Recycling must evolve from fragmented scrap handling into a structured manufacturing ecosystem. Corporates should treat plastic scrap as a measurable ESG asset, and policy frameworks must enable efficiency-driven circular growth rather than adding compliance friction.
If India is serious about circular manufacturing, policy must actively reward recycling efficiency. GST rationalisation on recycled inputs, formal scrap aggregation incentives, and automation-linked capital support can accelerate sector formalisation and unlock global competitiveness.”
The company outlined key reforms it believes are necessary. These include GST rationalisation on recycled raw materials, incentives for organised scrap aggregation models, automation-linked capital subsidies or faster depreciation benefits, and better alignment between ESG mandates and manufacturing policies.
By Concept Public Relations
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