Paving Way For Circular Growth: India’s Next Phase In Packaging Reform

World Environment Day: Circularity has been the cornerstone of India’s journey to sustainability. India has embarked on a significant and futuristic shift in its approach to packaging sustainability with the enforcement of mandatory recycled content in packaging materials. With the evolution of the Plastic Waste Management Rules in 2016, a pivotal moment came in 2022 when the Government notified the ban on single-use plastic items, strengthened the EPR framework, and launched a centralised compliance portal, showcasing the Government’s focus on sustainability.

This marked the transition from a fragmented structure to an enforceable system. Building on this momentum, the requirements introduced in 2022 on mandatory recycled content targets commencing from April 1st, 2025, cement India’s commitments to embed circular economy principles in industrial practices, reflecting a shift aligning environmental imperatives with economic resilience. 

Time For Action Is Now

Though the policy introduction has received mixed reactions, the introduction of this regulation was a long-needed step for a country like India. It is commendable that the Government has recognised the importance of establishing a framework that advances sustainability, strengthens local recycling infrastructure, and encourages a stable demand for recycled materials within the ecosystem.

Even those sceptical of the regulations are not objecting to the policy per se, but are worried about the rather misplaced fear of possible far-reaching negative impact on the industry and the economy. For a country like India, which swears by the concept of Responsible Growth, the time for action is now. 

Teething Issues Around...

Yes, unsurprisingly, the early days of implementation have seen some teething issues, particularly around regulatory clarity, alignment with food safety standards, and the readiness of supporting recycling infrastructure. These are understandable operational challenges in a transition of this scale, but they must not become reasons for inaction or delay in progress.

The industry must stay committed and work through them, together with the Government, because moving forward is essential. Most notably, of the five categories of “Obligated Entities” listed in the Plastic Waste Management (Amendment) Rules, 2024, only leading producers of Category III (Multilayered Plastic Packaging) have announced their readiness to comply with the mandatory requirements of recycled plastic in their packaging material. It would be utmost critical for the other categories (such as PET and flexibles) to also take necessary steps to comply with this landmark legislation. 

A large and growing share of the packaging industry recognises the long-term strategic value of the mandate, and several industrial players are beginning to realign their packaging design, material sourcing, and value chain coordination to meet the new requirements. There has been relatively modest uptake in the initial few weeks post the April 1st deadline, and we hope this does not reflect any general unwillingness from the sector, but rather transitional dynamics.

All On Board

For many stakeholders, particularly those looking to future-proof their operations, aligning packaging practices with recycled content mandates is not just about meeting compliance thresholds but aligns with the narrative that embedding recycled materials into packaging design supports long-term supply chain resilience, responds favourably to increasing consumer and investor expectations on sustainability, and positions the industrial players competitively in both domestic and global markets. Adapting early not only ensures regulatory alignment but also opens pathways for innovation, material efficiency, and cost optimisation over time.

It can be said that the timely implementation of the regulations is in the industry’s best economic and reputational interest. On-time implementation of these regulations is a strategic imperative, and the capacity of the recycling industry cannot be an excuse to extend the deadline. There will be no shortage of recycling capacity and availability of recycled material, as huge investments are reported in this segment.

Though the recycled content mandate officially came into force this year, its foundations were laid a few years ago, reflecting the Government’s foresight in aligning environmental goals with industrial resilience and commitment to embedding circularity into industrial systems. With collaboration between the public and private sectors and sharing best practices, operational challenges can be addressed to realise the full potential of the regulation.

Successful implementation, however, will require an agile and responsive framework. Areas such as food safety approvals for recycled materials in food and beverage applications, harmonisation of standards, including internationally accepted certification schemes such as ISCC Plus. Infrastructure development and readiness of compliance systems, such as CPCB’s EPR portal, updated audit and certification mechanism, will need attention as we transition onto the path of implementation. Addressing these concerns early will help prevent operational challenges from escalating and will support smoother and broader compliance.

India Leads The Way

India’s leadership stands out globally, with its Plastic Waste Management Rules already in action, including EPR, single-use plastic phase-outs, and recycled content targets. In contrast, many of the countries in the developed world are still evaluating the necessary policy changes required to mandate the inclusion of recycled plastics in packaging material. This proactive approach demonstrates foresight and a willingness to lead from the front, setting an example for other developing and emerging economies to address similar challenges and integrate sustainable outcomes in their industries.

For the regulation to achieve its intended impact, it is crucial that the FMCG industry fully understands its significance and commits to its implementation. While many companies are already making strides toward compliance, a larger shift in mindset is required across the value chain to embrace these changes.

In fact, the regulations present an opportunity to increase business resilience and contribute to a more sustainable, circular economy. The next steps need to be clearly defined, and the industry must become an integral part of the process and not stand behind. They must partner with the Government as this collaboration will benefit all. As we implement, let us keep navigating the teething challenges and move ahead. Let us together leap forward and strive to be the global leaders.

(The author is the Former Secretary, Ministry of Environment, Forest and Climate Change (MoEFCC))

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.

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