Transforming waste into value: Crafting a circular economy for India's electronic growth spurt
India's electronics production has experienced significant growth, with the industry's output increasing from US$48 billion in FY 2016-17 to US$101 billion in FY 2022-23. This growth, primarily driven by mobile phone manufacturing and assembly operations, has positioned India as a key player in the global electronics market. However, the rapid expansion of the sector has also led to a surge in e-waste, posing a significant challenge for the Indian government.
The informal sector in India manages about 90% of e-waste collection and 70% of recycling, a practice that often lacks safety measures and results in the loss of precious metals worth approximately $62 billion annually. To address this issue, the government is actively promoting domestic value addition and addressing e-waste management in the electronics sector through several initiatives.
## Promoting Domestic Value Addition
The Indian government is offering financial incentives to encourage large-scale electronics manufacturing, thereby promoting domestic value addition. The Production-Linked Incentive (PLI) Scheme and the Electronics Component Manufacturing Scheme (ECMS) are two such initiatives that aim to reduce import dependency and strengthen local supply chains. Additionally, targeted credit, skilling, and technology adoption programs are implemented to support micro, small, and medium enterprises (MSMEs).
## Addressing E-Waste Management
The government is exploring a circular economy approach to manage the growing accumulation of electronic waste. This involves recycling and reusing materials from discarded devices, which can help reduce the need for imports and support sustainability. Infrastructure development, such as Electronic Manufacturing Clusters (EMCs), is also being prioritized to create jobs, foster innovation, and contribute to more sustainable manufacturing practices.
## Achieving the US$500 Billion Production Target
Achieving the government's US$500-billion electronics production target by 2030 requires an estimated investment of US$150 billion. To meet this goal, investments in local R&D and skill development are crucial for transitioning from assembly to full-scale manufacturing. State-level initiatives are also being implemented to attract manufacturers and enhance India's competitiveness in the global market.
Collaboration with international tech firms is encouraged to boost competitiveness and integrate Indian companies into global value chains. However, it's essential to prioritize capacity building for micro-enterprises, including training, financial assistance, and simplified registration.
The E-Waste Management Rules (2022) mandate that producers recycle up to 80% of their e-waste by 2028. Integrating informal collectors into authorized recycling pathways is crucial for achieving this target, as they currently manage approximately 95% of e-waste processing. Social enterprises like Karo Sambhav and startups like Attero Recycling are already demonstrating the potential of this approach, deploying AI-based sorting and green extraction techniques.
Recovering materials from discarded electronics can reduce demand for virgin resources, cut emissions, and enhance material security. For instance, one tonne of computer scrap contains more gold than 17 tonnes of gold ore, and mobile phones contain five to ten times more gold than traditional ores. However, e-waste processing in India is often done by workers without protective equipment or social protections, highlighting the need for improved safety measures and working conditions.
India generated approximately 1.6 million metric tonnes of e-waste in 2021-22, making it the third largest producer globally. The government has formalised e-waste regulation through the Extended Producer Responsibility (EPR) framework, which aims to ensure that producers are responsible for the lifecycle of their products, including their disposal and recycling.
In summary, the Indian government is leveraging a combination of incentives, infrastructure development, and sustainability strategies to promote domestic value addition and address e-waste management challenges in the electronics sector. This comprehensive approach aims to support India's ambitious US$500 billion production target by 2030 while ensuring a more sustainable and responsible electronics industry.
- The Indian government is promoting domestic value addition in the electronics sector by offering financial incentives such as the Production-Linked Incentive (PLI) Scheme and the Electronics Component Manufacturing Scheme (ECMS).
- To reduce import dependency and strengthen local supply chains, the government is implementing targeted credit, skilling, and technology adoption programs for micro, small, and medium enterprises (MSMEs).
- In an effort to address e-waste management, the Indian government is exploring a circular economy approach, focusing on recycling and reusing materials from discarded devices.
- Infrastructure development, like Electronic Manufacturing Clusters (EMCs), is being prioritized to create jobs, foster innovation, and contribute to sustainable manufacturing practices.
- To achieve the government's US$500-billion electronics production target by 2030, an estimated investment of US$150 billion is required, which will be focused on local R&D and skill development.
- Collaboration with international tech firms is encouraged to boost competitiveness and integrate Indian companies into global value chains, while prioritizing capacity building for micro-enterprises.
- The E-Waste Management Rules (2022) mandate that producers recycle up to 80% of their e-waste by 2028, with the aim of integrating informal collectors into authorized recycling pathways.
- The government has formalised e-waste regulation through the Extended Producer Responsibility (EPR) framework, ensuring that producers are responsible for the lifecycle of their products, including their disposal and recycling.
