India’s plastic credit market is expected to grow 70%, reaching approximately $1.67 billion by 2030, up from the current $982 million, according to industry observers. The surge is largely driven by Extended Producer Responsibility (EPR) mandates that require producers, importers, and brand owners to include recycled content in their plastic packaging.
Under the new EPR framework, companies must demonstrate accountability in their use of plastic, either by incorporating recycled material or purchasing plastic credits to offset their virgin plastic use. This is fostering demand for plastic credits and accelerating investment in recycling systems.
However, industry experts have raised concerns over key implementation challenges. “While the regulation is a step forward, sourcing quality plastic waste at a viable price remains a hurdle,” said one industry executive. “The price discovery mechanism for credits is still evolving, and reverse logistics is not fully developed.”
Experts also pointed out that many recyclers are struggling with inconsistent collection systems and lack of infrastructure. The success of the credit mechanism, they argue, depends on improving waste segregation, streamlining logistics, and ensuring transparency in credit verification.
“The ecosystem needs better coordination between stakeholders—from local governments to waste aggregators and recyclers,” said another sector stakeholder. “Without that, compliance alone won’t drive circularity.”
Despite the challenges, the overall outlook remains positive as both domestic and multinational companies operating in India align with global sustainability targets. The credit mechanism, similar to carbon trading, is expected to play a central role in India’s evolving plastic waste management landscape.