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
- 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
- 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
- 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
- E-waste & Electronic Scrap
- Booming due to India’s digital penetration
- Formalization is improving post CPCB registrations and recycling zones
- 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.