April 20, 2025 – New Delhi, India

India’s metal scrap industry is experiencing a strong surge in 2025, fueled by aggressive infrastructure projects and a nationwide push for green manufacturing under the Make in India 2.0 and Green Bharat initiatives.

According to the Ministry of Steel, the import of ferrous scrap rose by 22% in Q1 2025 compared to the same period last year, driven by rising steel demand from the construction, automotive, and renewable energy sectors. Major ports like Mundra, Chennai, and Kandla have reported record volumes of incoming HMS 1 & 2, shredded scrap, and stainless steel scrap.

“Scrap is no longer waste—it’s the feedstock of modern, sustainable industry,” said Rajeev Thakur, Director of the Metal Recycling Association of India (MRAI). “With the government’s focus on circular economy, recycled metal is becoming a critical resource.”

India’s domestic scrap processing industry has also matured, with over 500 new shredding and baling units launched in the past 18 months. This growth has improved employment and reduced dependency on virgin ore imports.

The National Green Tribunal (NGT) has also introduced updated compliance rules to ensure environmentally safe handling, especially in urban scrap yards. Digital traceability for scrap transactions is now being piloted in Maharashtra and Gujarat.

Looking ahead, analysts predict that India could become Asia’s scrap processing hub, exporting processed ferrous and non-ferrous metals to Southeast Asia and the Middle East by 2027.

However, challenges such as inconsistent tax policies, informal sector dominance, and logistics bottlenecks remain. Industry bodies are urging the government to streamline GST rates on scrap and create dedicated “metal recycling parks.”