India is facing a growing e-waste challenge, and some global electronics manufacturers are concerned about the increased costs associated with recycling. Companies like Daikin, Hitachi, and Samsung are voicing their objections to new government regulations in India that require them to pay higher fees for recycling air conditioners, refrigerators, TVs, and other electronic devices. These manufacturers have taken legal action, including lawsuits against Prime Minister Narendra Modi's administration, arguing that the new rules will create compliance difficulties and disrupt their operations.
India ranks third globally in e-waste generation after China and the U.S., but only 43% of the country's electronic waste was recycled last year. The majority of the sector is made up of informal scrap dealers, whose methods can pose environmental and health risks. In an effort to address this issue, the Indian government introduced pricing regulations to formalize e-waste management and attract investment in the sector. However, these new rates have faced opposition from industry players, with companies like Johnson Controls-Hitachi, Daikin, Havells, and Voltas challenging the government's pricing rules in court.
The manufacturers argue that the pricing regulations are unconstitutional, go beyond the government's environmental law mandate, and significantly increase compliance costs. They believe that the new policies unfairly benefit recyclers at the expense of manufacturers. Companies are concerned that the higher recycling costs will ultimately impact product prices and hinder the growth of India's consumer electronics market, which is estimated to be worth $62 billion this year. With the rapid urbanization and increasing sales of consumer electronics in India, the country's e-waste generation has more than doubled in six years, reaching 1.7 million metric tons in 2023-24.