India's Plastic Rules Bend: Deadlines Shift, Recycling Fights On

India has amended its Plastic Waste Management Rules, introducing provisions that allow companies to shift compliance deadlines for recycling targets. While the headline targets remain unchanged, businesses failing to meet their obligations in 2025-26 can now carry forward the shortfall for up to three years, provided they meet at least a third of the deficit annually. This marks a departure from previous annual compliance requirements.

The updated rules formalize a system of tradable certificates. This mechanism enables companies to fulfill their recycling obligations by purchasing credits from entities that have surpassed their targets. While offering flexibility and potentially reducing compliance costs, it means companies are not necessarily obligated to recycle their own plastic footprint.

Furthermore, the rules stipulate that targets do not apply where other regulations, such as food safety standards, restrict the use of recycled plastic. This exemption could significantly impact the packaging sector, particularly for food and beverage companies. The phased targets for recycled content and reuse, initially introduced in 2022 under the Extended Producer Responsibility (EPR) framework, continue with incremental increases through 2028-29.

India's mandate requires companies to collect and process 100% of the plastic they introduce into the market by 2024-25. Despite over 20.7 million tonnes of plastic packaging waste being recycled since the EPR framework began in 2022, challenges persist, with annual generation remaining high. Public data on full compliance is limited, with reporting largely relying on self-declarations.