Context

• India’s digital revolution is redefining its development trajectory, propelling the nation towards its vision of Viksit Bharat, a developed India.
• From smartphones and laptops to sophisticated industrial and medical technologies, digital infrastructure has become the cornerstone of economic growth, social inclusion, and innovation.
• However, this transformation comes with a significant environmental cost: the exponential rise in electronic waste (e-waste).
• As India emerges as one of the world’s largest generators of e-waste, effective management of this growing challenge becomes essential to ensure sustainable progress.

The E-Waste Surge: A Looming Challenge and Consequence

• The E-Waste Surge
  • India’s e-waste landscape has experienced alarming growth in recent years.
  • Between 2017-18 and 2023-24, the country’s e-waste volume surged by over 151%, rising from 7,08,445 metric tonnes to 17,78,400 metric tonnes.
  • This translates to an annual increase of approximately 1,69,283 metric tonnes.
  • These figures position India alongside global e-waste giants such as China, the United States, Japan, and Germany.
  • As the digital ecosystem deepens, India must balance its technological advancement with robust environmental safeguards.
• Consequences of Mismanaged E-Waste
  • The cost of ineffective e-waste management is multifaceted and severe.
  • Environmentally, India suffers losses exceeding $10 billion annually due to pollution from harmful substances such as cyanide, sulphuric acid, and lead.
  • Socially, the unregulated and often illegal recycling sector, dominated by informal workers, including women and children, incurs a human cost, with average lifespans of these workers plummeting below 27 years due to toxic exposure.
  • Moreover, informal recycling methods are economically inefficient, resulting in the loss of critical metals worth over ₹80,000 crore and an estimated $20 billion in unaccounted tax revenue each year.

Extended Producer Responsibility (EPR): A Strategic Pillar

• To combat the growing menace of e-waste, India has adopted the Extended Producer Responsibility (EPR) framework.
• EPR mandates that producers, importers, and brand owners manage the waste generated by their products at the end of their lifecycle.
• This policy tool encourages manufacturers to design sustainable products, internalise environmental costs, and support efficient waste management systems.
• Crucially, it alleviates the burden on municipal systems, shifting accountability to those best positioned to enact change.

The Role of EPR Floor Pricing

• To address these systemic issues, the E-waste (Management) Rules, 2022 introduced a floor price for EPR certificates.
• This policy innovation ensures fair compensation for registered recyclers, reducing the economic appeal of informal and unsafe recycling practices, which currently process 95% of India’s e-waste.
• Stable pricing mechanisms incentivise investment in advanced, environmentally sound recycling technologies that can extract valuable materials like gold and copper, thereby supporting a circular economy.
• This economic intervention has substantial environmental benefits.
• Recyclers, now assured of minimum compensation, are encouraged to prioritise material recovery over hazardous disposal.
• This reduces the flow of toxins into soil and water systems, transforming e-waste from a pollutant into a valuable resource.
• By aligning EPR certificate pricing with global standards, India can develop a market that rewards compliance, innovation, and environmental stewardship.

The Way Forward

• Balancing Costs and Long-Term Gains
  • Critics of EPR floor pricing argue that it may raise production costs and, consequently, consumer prices.
  • While this concern is valid, it overlooks the broader and more pressing costs of inaction: environmental degradation, public health crises, and squandered economic resources.
  • Producers can mitigate these costs by embracing eco-design and product durability, central goals of the EPR framework.
  • Lessons from the plastic industry, where under-pricing led to rampant non-compliance and sham recyclers, serve as a cautionary tale.
  • In contrast, adequate floor pricing can catalyse innovation and build trust in the recycling ecosystem.
• Toward a Visionary Recycling Framework
  • The implications of EPR pricing transcend economic policy. Insufficient pricing threatens natural resources, agricultural safety, and public health.
  • By valuing formal recycling, India can build a responsible, technologically advanced e-waste management infrastructure that ensures both environmental and economic sustainability.
  • The introduction of floor pricing is not merely a financial tool; it is a strategic foundation for India's leadership in global sustainability efforts.
  • As India witnesses a 73% increase in e-waste over just five years, the urgency for action is clear.
  • A well-calibrated EPR pricing system can create a virtuous cycle: empowering formal recyclers, discouraging informal practices, supporting innovation, and protecting the environment.
  • This policy shift not only supports India’s economic ambitions but also strengthens its commitment to a cleaner, greener future.

Conclusion

• India’s digital ascent must be matched by environmental responsibility.
• The explosive growth in electronic waste demands systemic interventions that combine regulation, economic incentives, and innovation.
• Extended Producer Responsibility and a stable floor price for recycling certificates offer a transformative solution.
• As India aspires to become a global sustainability leader, these measures will be critical in ensuring that the journey toward Viksit Bharat is not only technologically advanced but also environmentally conscious and socially just.