Business Correspondent
New Delhi, 20 February 2026 — India’s scrap and recycling sector, long informal and undervalued, is now a $17 billion opportunity central to industrial growth, carbon reduction, and supply chain resilience. At a panel
hosted by PHDCCI, policymakers and industry leaders on Friday came up with a roadmap to transform scrap from “waste” into strategic urban ore, formalize informal players, and digitize transactions for transparency and financing.
With steel production set to surge from 165 million tonnes today to 700 million tonnes by 2070, scrap is indispensable: one ton of recycled steel saves 1.1 tons of iron ore, 630 kg of coking coal, and cuts emissions by nearly 28%. Yet India’s domestic scrap utilization lags at just 22%, leaving the country reliant on 8 million tonnes of imports amid growing global export restrictions.
Speakers emphasized that formalizing the informal network — 90% of recycling is currently in hazardous, low-recovery conditions—and integrating it into traceable, technology-led marketplaces is not just an environmental imperative but a business opportunity.
Industry veterans like Vijay Sharma of Jindal Steels and Alok Sahay of the Indian Steel Association framed scrap as a strategic commodity: essential for cost-efficient steelmaking, competitive supply chains, and immediate decarbonization, especially as India’s carbon intensity remains high at 2.55 tonnes CO₂ per tonne of steel. Dr. Ajay Mathur highlighted the potential for 10 million green jobs through sector formalization, while Dr. Jatinder Singh of PHDCCI called for urgent focus on governance, finance, and digital infrastructure to seize the sector’s economic and environmental promise.
Alok Sahay, Secretary General and Executive Head, Indian Steel Association, in a special address noted — While integrated steel players maintain a strong record in segregated scrap usage — a key tool for progressive cost reduction — India’s continued investment in blast furnace production remains an economic necessity given the country’s growth ambitions. He placed the global context, noting that of the 2 billion tonnes of steel produced annually worldwide, only 600 million tonnes comes from scrap, with hydrogen-based alternatives still costly and high-grade DRI iron ore limited in India. He underlined that India’s carbon intensity stands at 2.55 tonnes of CO₂ per tonne of steel, making scrap’s immediate 28% emission reduction among the most practical short-term decarbonisation solutions available — far more attainable than expensive long-term pathways. Presenting India’s growth trajectory, he noted that steel production has risen from 25 million tonnes to 165 million tonnes, with targets of 300 million tonnes by 2030, 500 million tonnes by 2047, and 700 million tonnes by 2070 — making scrap strategically essential. He also pointed to a significant gap and opportunity — India’s scrap-based production stands at just 22%, compared to 70% in the US and 55% in the EU — while warning that India’s 8 million tonne scrap import dependence faces rising risk as OECD countries consider export restrictions, making domestic scrap development a supply chain imperative.
Speaking at the panel, Dr. Ajay Mathur, Ex-Director General, Indian Solar Alliance, opened with a striking reflection — the last item he discarded was a rusted car fender given to a “kabadwala” — using this to highlight the informal yet indispensable network that has quietly sustained India’s recycling ecosystem for decades. He called for a fundamental reframing: scrap is not waste — it is urban ore, stored value, and future raw material. He identified three structural challenges — informality (90% of recycling in hazardous, low-recovery conditions), the segregation crisis, and a deep trust deficit. He outlined three critical shifts — formalisation of “kabadwalas” as green entrepreneurs, a digital backbone for traceability and pricing transparency, and policy support through recycling parks and minimum recycled content mandates.
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