E-Waste Battle Brews: Foreign Tech Giants Sue Over India’s Recycling Rules

India-West News Desk

NEW DELHI – India is ramping up its efforts to address a growing e-waste problem, but major global electronics manufacturers are sounding the alarm over the financial burden of new government regulations.

Companies including Daikin, Hitachi, Samsung, and others have raised strong objections to a recent policy that significantly raises the cost of recycling appliances like air conditioners, refrigerators, and televisions.

According to court filings and lobbying documents, the manufacturers are urging Indian authorities to roll back the rules—four companies have even taken legal action against Prime Minister Narendra Modi’s administration in New Delhi.

The legal and regulatory standoff, previously unreported, highlights the mounting tension between foreign businesses and India’s evolving industrial policies, said Reuters. Some companies view the latest measures as part of a broader trend of protectionism and shifting regulatory frameworks that create uncertainty and raise operational costs, it added.

India is currently the world’s third-largest generator of electronic waste, trailing only China and the United States. Yet, according to government data, less than half of the e-waste produced in the country last year—about 43%—was properly recycled. A large portion of the recycling sector, roughly 80%, is operated by informal scrap dealers, whose practices often pose serious risks to both public health and the environment.

In 2023–24, India generated 1.7 million metric tons of e-waste, more than double the amount recorded six years ago, said Reuters.

In a bid to formalize the sector and stimulate investment in eco-friendly recycling infrastructure, the Indian government introduced a mandatory minimum price in September that manufacturers must pay certified recyclers. But companies argue the new system dramatically increases their compliance costs and is unfairly weighted in favor of recycling firms.

Between November and March, Johnson Controls-Hitachi, Japan’s Daikin, India’s Havells, and Tata Group’s Voltas all filed petitions in Indian courts, challenging the policy reported Reuters. In their filings, the companies contend that the rules are unconstitutional, go beyond the government’s legal authority under environmental law, and will impose steep financial burdens on manufacturers.

Daikin went as far as to accuse the Indian government of designing policies with the “sole intention” of enriching one segment of the industry at the expense of another. Voltas warned the rules could lead to a “cascading effect” that would ultimately raise prices for consumers.

Companies like Samsung and Daikin now face what they view as a hostile regulatory environment. India is often perceived as protectionist and in the past, lobbying from giants like Amazon and Walmart failed to roll back rules safeguarding small retailers.

Now, with e-waste management under the spotlight, the Modi government appears equally determined to hold its ground.