Budget expectations 2026: Recycling industry seeks open scrap trade; flags tariff risks to circular economy
As global tariff uncertainty reshapes trade flows, leaders from the recycling industry have urged policymakers to prioritise open markets and ease cross-border movement of scrap and reusable materials in the Union Budget 2026, arguing that unrestricted trade is critical to building a resilient circular economy.Speaking at the International Material Recycling Conference (IMRC) 2026 here, industry representatives said global market access for recycled materials remains the single biggest enabler for investment, innovation and sustainability, especially at a time when protectionist pressures are rising across major economies, PTI reported.Robin Wiener, president of the US-based Recycled Materials Association (ReMA), said countries such as the United States generate a structural surplus of recycled materials, making export markets indispensable. She noted that in 2025 alone, the US recorded a surplus of over $22 billion in recycled commodities.Highlighting India’s importance, Wiener said the US–India recycling trade has grown nearly six-fold over the past two decades and has remained largely insulated from recent tariff disruptions, as New Delhi chose not to retaliate against higher US tariffs. India is now the third-largest destination for US recycled material exports by both volume and value, with shipments of 4.3 million metric tonnes worth $2.3 billion in the past year.While tariffs have risen sharply since January 2025 under multiple US trade regimes, Wiener cautioned that export restrictions pose a bigger long-term risk to global circularity than duties. Proposals to curb exports of metals such as aluminium, nickel and copper, she said, are counterproductive when surplus material is available globally.From a regional perspective, Mir Mujtaba, president of the Bureau of Middle East Recycling, said sustainability mandates and net-zero commitments across the Middle East are turning recycling into a strategic industry. He pointed to a natural partnership between India and the region, combining India’s scale and processing expertise with Middle Eastern logistics, capital and policy-driven sustainability goals.Indian industry representatives said Budget 2026 should reinforce this momentum. Amar Singh, secretary general of the Material Recycling Association of India (MRAI), estimated that India’s circular economy could generate over $2 trillion in value and nearly 10 million jobs by 2050, provided policy bottlenecks are addressed. He cited challenges such as low domestic scrap availability, high import dependence, GST distortions and the dominance of the informal sector.Sanjay Mehta, president of MRAI, said duty-free access to scrap—especially aluminium—was essential to meeting India’s manufacturing and decarbonisation targets. “Zero duty on all scrap imports is inevitable if India is serious about its circular economy ambitions,” he said, expressing hope of policy movement within the next year.Industry leaders said Budget 2026 offers an opportunity to align trade, tax and sustainability policies to ensure free flow of scrap, strengthen domestic recycling capacity and position India as a global hub in the circular economy value chain.
