India’s Scrap Market in 2025: Rising from Waste to Wealth

As India accelerates toward industrial sustainability, the scrap market in 2025 has emerged as a vital cog in the country’s circular economy engine. With rapid urbanization, manufacturing expansion, and regulatory reforms, scrap is no longer viewed as “waste”—but as a resource with immense economic potential.

📊 Market Overview

India’s scrap market—comprising ferrous, non-ferrous metals, plastic, rubber, paper, and e-waste—is estimated to be worth ₹85,000 crore (~$10 billion) in 2025, growing steadily at a CAGR of 9-11%.

Key growth drivers include:

• Steel and auto industry demand for quality scrap
• Vehicle Scrappage Policy 2021 now in full effect
• Import substitution goals, particularly for metals
• Rising raw material prices, making recycled input more viable

🏗️ Segment-Wise Insights

1. Ferrous Scrap (Steel & Iron)
   • Demand driven by construction, infrastructure, and auto manufacturing
   • India aims to double steel capacity to 300 MT by 2030, making steel scrap a critical resource
   • Formal scrap yards and shredding units are increasing due to policy push
2. Non-Ferrous Scrap (Aluminum, Copper, Zinc, etc.)
   • India’s non-ferrous imports exceed $20 billion, making domestic scrap a strategic priority
   • Industries prefer recycled copper and aluminum due to energy savings and lower costs
   • Growing applications in EVs, electronics, and aerospace
3. Plastic & Rubber Scrap
   • Demand from reprocessed plastic product manufacturers
   • Circular plastic economy being enabled by EPR norms and FMCG sector participation
   • Tyre recycling and pyrolysis technology gaining traction
4. E-waste & Electronic Scrap
   • Booming due to India’s digital penetration
   • Formalization is improving post CPCB registrations and recycling zones
5. Paper & Cardboard Scrap
   • Still largely driven by packaging demand
   • India imports paper scrap due to weak local collection networks

🔍 Key Trends in 2025

• Digital scrap marketplaces like ScrapUncle, Kabadiwala, and Cero are disrupting traditional collection methods
• Vehicle scrappage infrastructure has expanded with over 150 Registered Vehicle Scrapping Facilities (RVSFs)
• Smart segregation and AI-based grading of scrap materials are being piloted in cities
• Blockchain is being explored to trace scrap origin and quality, especially in metals

🚧 Challenges

• Informal dominance: Nearly 80% of India’s scrap trade still occurs in the informal sector
• Lack of uniform scrap standards and quality benchmarks
• Limited financing for micro-scrap dealers and aggregators
• Fragmented supply chain, especially in rural and semi-urban zones

🌱 The Opportunity Ahead

• Domestic scrap recycling could reduce India’s raw material import bill by 25-30%
• Formalization of the sector could create 1.5–2 million jobs in sorting, logistics, and processing
• Investors are eyeing green steel, copper recovery, and urban mining as key growth areas
• Public-private partnerships (PPPs) for scrap parks, sorting hubs, and training programs are on the rise

🧭 Conclusion

India’s scrap market in 2025 is no longer a back-alley business—it’s a dynamic, opportunity-rich sector ready for formalization, digitization, and sustainable growth. Businesses that embrace traceable, high-quality scrap usage are gaining a competitive edge—not just on cost, but on ESG performance. With government support and private innovation, scrap is truly becoming India’s industrial gold.