But the real challenge lies not just in generation, but in how plastic is handled within municipal solid waste (MSW).  According to the CPCB (Central Pollution Control Board) report 2020-21, India produces over 160,000 tons per day (TPD) of MSW, where plastic waste is often mixed with organic, biomedical, or hazardous components, making it economically and technically difficult to recycle. The potential to transform waste into value hinges on how effectively plastics are segregated at source.

Segregation is the first mile of circularity 

Source segregation is the practice of separating waste at the point of generation is mandated under the Solid Waste Management Rules, 2016, yet compliance remains low. “Waste wise Cities”- A 2023 report by NITI Aayog indicates that only 17% of Indian households practice full waste segregation.

Segregated plastics, especially clean and dry ones, retain their material quality and can be processed into value-added products like recycled PET bottles, plastic lumber, and construction-grade materials. On the contrary, mixed plastic waste has limited recyclability, pushing it into the informal sector or into incinerators.

If even 50% of India’s plastic waste were properly segregated, studies estimate that economic returns could increase by 60% due to better recyclability, reduced processing costs, and higher market value.

Integrating Informal Waste Workers: A Missed Opportunity

India’s recycling economy is heavily dependent on an estimated 1.5 to 4 million informal waste workers, many of whom collect and sell plastic waste. However, their potential is undermined by hazardous working conditions, lack of recognition, and absence of stable supply chains for sorted plastic.

Municipal segregation practices can dramatically improve their working conditions and incomes. For example, when Pune’s SWaCH cooperative, India’s first fully worker-owned cooperative of waste pickers, partnered with the municipality, the incomes of waste pickers increased by up to 40% due to access to cleaner, sorted plastic waste streams.

Integrating informal workers through cooperatives or public-private partnerships not only boosts efficiency but aligns with just transition goals—creating green livelihoods while solving the plastic crisis.

Over 80% of plastic recovery in India is driven by the informal sector yet they operate in unsafe, unrecognized conditions. These challenges can be addressed through

• Formal recognition of waste pickers as “environmental service providers” under municipal contracts.
  
  
• Offer micro-loans, PPE kits, and skilling for clean plastic sorting.
  
  
• Platforms like Hasiru Dala (Bangalore) and SWaCH (Pune) show that integration increases recovery and dignity.
  
  

The Business Case for Plastic Circularity

Plastic recycling is no longer a CSR sidebar, it’s a strategic business imperative. Global brands, especially in FMCG and packaging, face mounting pressure to incorporate Post-Consumer Recycled (PCR) plastics into their supply chains. However, the quality and consistency of recycled plastics depend almost entirely on effective segregation.

A World Bank (2022) report found that India’s recycling industry could grow to USD 6–8 billion by 2030 with the right segregation infrastructure and policy support. Startups in plastic circularity from waste-to-fuel to plastic bricks are gaining traction, but they need reliable input material. Segregated waste provides that stability.

Moreover, reducing dependency on virgin plastic through recycling could save more than 5 million tonnes of CO₂ annually, a significant contribution to India’s climate commitments under the Paris Agreement.

Case Study

What Indore Did Right: Leading by Example

Indore, India’s cleanest city for seven consecutive years in the Swachh Survekshan rankings, offers a powerful case study in source segregation and plastic circularity.

Key interventions that worked:

• Segregation at source- 95%+ segregation at source through sustained door-to-door collection campaigns, streamlining the whole management and recycling process, effective and impactful.
  
  
• Leadership Buy-in –  Indore’s local government took full ownership of waste management by deploying 600+ GPS-enabled vehicles for daily segregated waste collection, ensuring efficiency and curbing illegal dumping. Multiple Material Recovery Facilities (MRFs) were set up to sort and bale dry waste, especially plastics, enabling effective recycling.
• Modern and Efficient Infrastructure- Collection vehicles with separate chambers for different waste materials, Integrated command and control center,Transfer stations, Biogas facility Material recovery facilities, sanitary landfills.  
• Strict Monitoring and Enforcement- Incentives for residents to segregate waste, such as fee rebates and public recognition. Strong enforcement by municipal teams, combined with IEC (Information, Education, Communication) campaigns in local languages.
  
  

Indore has emerged as a national exemplar in reducing methane emissions through efficient municipal solid waste management.Its model demonstrates how local action can deliver measurable climate benefits while promoting circularity and urban resilience.

Policy Levers and Way Forward

While Extended Producer Responsibility (EPR), 2022 rules now require companies to collect and process their plastic waste, implementation remains questionable. EPR mechanisms must be backed by municipal-level data on plastic recovery and integrated with existing segregation systems. Digital tracking of plastic flows, public-private partnerships for Material Recovery Facilities (MRF), and financial incentives for households and bulk waste generators can create systemic change.

Further, urban planning must make room for decentralized MRFs within wards or zones, reducing transport costs and encouraging local job creation. Mandating multi-bin systems, investing in behavior change campaigns, and enabling digital tools for waste tracking can close critical gaps in segregation.

Making Plastic Circular, Not Perpetual

The future of plastic lies not in eliminating it, but in engineering systems that recapture its value again and again. Segregation at source is the most underrated climate and economic intervention available to Indian cities today.

If we want a circular economy that is socially inclusive, economically viable, and environmentally responsible, then the answer is not just innovation. Its integration of households, municipalities, informal workers, and markets. And that integration begins with a green bin at the doorstep.