Jaipur.India is set to witness a significant increase in steel scrap demand as the country expands its steel-making capacity, said Shri Daya Nidhi Pandey, Joint Secretary, Ministry of Steel, while inaugurating the 13th International Material Recycling Conference and Expo (IMRC 2026) here on Tuesday.
Addressing the inaugural session, Shri Pandey said that scrap currently accounts for around 21% of India’s crude steel production, compared to a global average of nearly one-third. He noted that steel scrap availability in India is estimated to reach around 36 million tonnes, clearly indicating a sharp rise in demand as large-scale capacity expansion takes place in the steel sector.
Referring to policy initiatives, he said the government has taken coordinated steps through the Steel Scrap Recycling Policy 2019, the Vehicle Scrappage Policy, introduction of Registered Vehicle Scrapping Facilities (RVSFs), and integration of scrap management with national circular economy initiatives.
“The recently notified Extended Producer Responsibility (EPR) provisions for end-of-life vehicles and construction and demolition (C&D) waste are expected to significantly accelerate formal scrap recycling in the country,” he added.
Outlining the future roadmap, Shri Pandey said India aims to gradually increase the share of scrap in steel production to around 31%, in line with global averages. With steel capacity targeted at 300 million tonnes by 2030 and 500 million tonnes by 2047, steel scrap will play a crucial role in conserving raw materials, reducing coal imports, lowering emissions, and achieving India’s net-zero target by 2070.
He further stated that scrap-based steel production strengthens India’s decarbonisation strategy by reducing carbon emissions and dependence on iron ore and coking coal. With a target of 300 million tonnes of crude steel capacity by 2030–31, consumption of recycled steel scrap is expected to grow rapidly.
Highlighting industry challenges, Shri Sanjay Mehta, President, MRAI, stressed the urgent need for policy reforms.
“For the recycling industry, GST on scrap should be reduced to 5%. The current high rates are hampering industry growth and encouraging non-compliance. Import duty on aluminium scrap should also be completely removed,” he said. He also emphasised effective implementation of EPR norms for e-waste, tyres and plastics, warning that weak enforcement is impacting the recycling value chain.
On the social aspect of recycling, Shri Mehta said nearly one-third of India’s scrap comes from ragpickers, households and small workshops.
“Reducing GST and promoting UPI-based transactions for scrap purchases from the informal sector, while discouraging cash transactions at the first level of collection, will help integrate these workers into the formal economy with dignity and stability,” he added.
Speaking on the evolving industry landscape, Shri Dhaval Shah, Senior Vice President, MRAI, said recycling in India has moved beyond being a CSR activity and has become a core business strategy. He noted that over 1,400 startups are currently active in the waste management and sustainability sector.
“At this pace, the recycling industry could become larger than the mining sector even before 2050,” he said.
Shri Jain Nathani, Vice President, MRAI, described India’s recycling industry as a game changer, while Shri Amar Singh, Secretary General, MRAI, said the sector has undergone a major transformation and is poised for rapid growth with increased contribution to GDP.
Addressing the role of finance and global capital, Shri Rajat Agrawal, Managing Director, Gravita India Limited, said access to capital is no longer a constraint for responsible recyclers.
“Global green funds and ESG-focused investors are actively backing scalable recycling platforms that deliver both financial returns and environmental impact,” he said, adding that Indian recyclers are now emerging as globally competitive climate-solution providers.
Organised by the Material Recycling Association of India (MRAI), the three-day conference is being held from January 20 to 22, 2026, at the Novotel Jaipur Convention Centre, Jaipur. The event brings together policymakers, industry leaders and global stakeholders to discuss the role of recycling in sustainable industrial development.
The inaugural session also featured discussions on sustainability, climate change, energy storage and the circular economy transition, along with long-term challenges related to regulatory clarity and market stability.
On the occasion, Lifetime Achievement Awards were presented to Shri Jinesh Shah, Director, Rajhans Impex Pvt. Ltd.; Shri Purushottam Parolia, CMD, Nihon Ispat Pvt. Ltd.; and Shri Hitesh Shah, Chairman, Mono Steel (India) Limited.
The Global Recycler of the Year Award was conferred on Shri Anshul Gupta, Chairman, Pan Gulf International.