New Delhi: India’s crackdown on e-waste is sparking legal fireworks. Major electronics manufacturers, including Samsung, Daikin, and Hitachi, are battling New Delhi over new recycling rules they claim could drive up costs and disrupt business.
With lawsuits piling up, the country’s ambitious cleanup plan has hit a wall of corporate resistance.
The government mandate introduced in September 2023 sets minimum recycling prices for consumer electronics. The aim is to formalize the largely unregulated recycling sector, improve environmental outcomes, and encourage investment in proper e-waste disposal practices. However, the companies argue that the new rules are excessive and unconstitutional.
At least four manufacturers have taken legal action against Prime Minister Narendra Modi’s administration, filing petitions in New Delhi between November and March to overturn the pricing regulations.
In their court submissions, the companies contend that the mandated floor prices – 22 rupees per kilogram for general electronics and 34 rupees per kilogram for smartphones – unfairly raise compliance costs and overstep the government’s legal authority under existing environmental laws.
The Consumer Electronics and Appliances Manufacturers Association, which represents major players like Samsung and LG, echoed these concerns in a letter to the Environment Ministry, stating that compliance costs now consume 2 percent to 8 percent of production expenses.
India ranks as the world’s third-largest generator of e-waste, producing 1.7 million metric tons in 2023–24, a figure that has more than doubled in just six years. Yet, only 43 percent of this waste was recycled last year, according to government data.
The remainder is often handled by an informal network of scrap dealers using dangerous methods like open burning and acid leaching, which pose serious health and environmental risks.
To curb these practices, the Indian government is pushing to formalize the sector. There are currently 322 authorized recyclers in India, and officials argue that enforcing minimum payments ensures sustainable practices and prevents a “race to the bottom” in pricing.
In its March 18 submission to the court, the Environment Ministry defended the policy as ‘reasonable,’ emphasizing the need for regulated pricing to support environmentally sound recycling infrastructure.
The standoff reflects broader tensions between India and multinational corporations over the country’s protectionist and regulatory policies.
From foreign retail giants like Amazon and Walmart to tech companies, many have clashed with India’s government over what they view as sudden regulatory changes.
Yet the Modi administration remains firm on its environmental objectives.
