India’s Plastic Waste law signals “structural shift” for recycling sector


“The recent notification has reinforced the government’s commitment to moving toward circular and closed-loop manufacturing and boosted investor confidence in the plastic waste recycling ecosystem,” Jain tells Packaging Insights

The update aims to facilitate circularity through the mandatory use of recycled plastic and reusable packaging. 

APR Bharat focuses on the food-grade recycled PET (rPET) industry. Jain says that the recent authorization of the Food Safety and Standards Authority of India (FSSAI) of 17 recycled PET plants would further support the country’s recycling sector, enhancing production capacity to 3 lakh tons (300,000 metric tons). 

“This is sufficient to cater to the 40% rPET mandate requirement [under the PWM] for the financial year 2026–2027.”

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He describes the FSSAI-approved facilities as aligned with international standards set by the European Food Safety Authority and the US Food and Drug Agency, ensuring that rPET used in food-contact applications meets stringent safety and quality benchmarks.

“This directly addresses the biggest barrier to adoption, the trust in safety and consistency at scale,” explains Jain.

“More importantly, this signals a structural shift beyond the rPET industry. Waste is being reintegrated as a regulated, high-quality industrial input, not treated as an externality. That is the foundation of a functional circular economy.”

The rising prices of oil and virgin plastic amid ongoing supply chain pressures are pushing countries and companies to consider recycled plastic for packaging.

Clarifying PWM mandate

Jain explains that the PWM Rules from 2022 had already mandated the use of recycled content for food packaging from April 2025 onward, with a mandate of 30% set to increase to 60% by the financial year 2028–2029.

However, he emphasizes that the recent update has provided “clarity on the provisions of draft notification issued by the Ministry of Environment, Forest and Climate Change of India on June 3, 2025, and allowed brands and producers to carry forward shortfalls in meeting the 30% rPET target for food contact applications for 2025–2026 over the next three years.”

“Starting April 1, 2026, brands and producers have been required to use 40% recycled content in packaging. In addition, they are also expected to carry forward an unfulfilled target for mandatory use of recycled content for 2025–2026 [30%] for a period of up to three consecutive years, with a minimum of one third of the carry forward target to be achieved every year,” says Jain. 

Jain argues that this clarity on the minimum mandate can accelerate the adoption of rPET across the F&B sector, “creating robust demand for high-quality recycled materials while strengthening the domestic recycling ecosystem.”

“By closing the loop on plastic use, the policy will play a pivotal role in reducing plastic waste leakage into the environment and minimizing dependence on virgin plastics.”

He asserts that the updated targets in the PWM are realistic and in line with the country’s recycling capacity, as a “large-scale expansion” is already underway.

“APR Bharat members are expanding at scale. Their food-grade rPET capacity is expected to reach 7.5 lakh tonnes (750,000 metric tons) by March 2027, positioning the industry to serve the market demand sustainably for the coming decade.”



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