India's Transition to Sustainable Plastic Economy Suffers Major Jolt, Thanks to Policy Ambiguity

India's ambitious proposed transition to a sustainable plastic economy and the ambitious circular economy goals envisioned by Prime Minister Narendra Modi may suffer a major jolt, thanks to certain policy ambiguity.

- RITWIK MUKHERJEE

The recycled PET (r-PET) industry has already sounded the alarm bell over poor uptake of recycled plastic by major brand owners.

The mandate from the Union Ministry of Environment, Forest and Climate Change (MoEFCC) over the use of 30 per cent recycled content in rigid Category-1 PET packaging used by beverage companies, which was put into effect from April 1, 2025, notwithstanding, brand owners are reportedly dragging their feet on procurement, citing confusion stemming from proposed amendments to the Plastic Waste Management (PWM) Rules recently.

The problem began when the MoEFCC proposed an amendment on June 3, 2025, allowing brand owners to carry forward shortfalls in meeting the 30 per cent r-PET target for 2025-26 over the next three years. This leeway, according to industry insiders, has emboldened some brand owners to assume an eventual rollback or relaxation of the target—resulting in delayed or avoided purchase of r-PET.