India’s Plastic Recycling Sector Needs Automation Push to Compete Globally: AVRO Chairman
Mumbai, Feb 13: India’s plastic recycling industry must fast-track automation adoption and policy alignment to remain globally competitive, said AVRO India Limited Chairman Mr. Sushil Aggarwal, flagging structural inefficiencies that continue to restrict scalable growth.
As global brands tighten sustainability benchmarks and traceability mandates, demand for high-quality recycled polymers is accelerating. However, fragmented scrap aggregation, inconsistent feedstock quality, semi-mechanised operations, and tax-policy friction continue to constrain the sector’s formalisation and capital inflow.
A large portion of recycling capacity still operates through partially mechanised systems, limiting contamination control, manufacturing-grade consistency, and end-to-end traceability standards increasingly mandatory for export-linked supply chains and institutional buyers.
AVRO India Limited has called for a decisive transition toward automation-led processing, advanced sorting technologies, structured scrap sourcing ecosystems, and stronger corporate-recycler partnerships to unlock scale, efficiency, and investor confidence.
Speaking on the industry’s outlook, Mr. Sushil Aggarwal, Chairman and Whole-time Director, AVRO India Limited, said: “India’s plastic recycling sector cannot compete globally without automation and disciplined process engineering. As sustainability standards rise, consistency, traceability, and quality assurance become non-negotiable. Recycling must evolve from fragmented scrap handling into a structured manufacturing ecosystem. Corporates should treat plastic scrap as a measurable ESG asset, and policy frameworks must enable efficiency-driven circular growth rather than adding compliance friction.
If India is serious about circular manufacturing, policy must actively reward recycling efficiency. GST rationalisation on recycled inputs, formal scrap aggregation incentives, and automation-linked capital support can accelerate sector formalisation and unlock global competitiveness.”
Key Reform Priorities Highlighted by AVRO:
- GST rationalisation on recycled raw materials
- Incentives for organised scrap aggregation models
- Automation-linked capital subsidies or accelerated depreciation
- Policy alignment between ESG mandates and manufacturing incentives