As India accelerates its transition towards a resource-efficient and low-waste economy, the spotlight is increasingly on circular solutions that balance environmental responsibility with economic resilience. The recent approval of 17 food-grade r-PET plants by the Food Safety and Standards Authority of India (FSSAI) marks a significant step in this direction, unlocking a capacity of 3 lakh tonnes and strengthening the foundation for circular packaging. In this conversation, Mr. Goutham Jain, Director General, APR Bharat, explains how this move signals a decisive shift from policy intent to on-ground execution. He highlights how the development not only builds trust in recycled plastics for food use but also reduces reliance on imported virgin materials amid global uncertainties. From boosting recycling rates and enabling compliance with upcoming mandates to creating livelihoods and enhancing supply chain stability, Mr. Jain emphasises how r-PET is emerging as both a sustainability driver and a strategic industrial lever for India’s future.
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Q&A
Q. FSSAI has approved 17 r-PET plants with a combined capacity of 3 lakh tonnes. Beyond the announcement, what real changes do you expect to see on the ground in India’s circular packaging ecosystem?
A. The approval of 17 FSSAI-authorised rPET plants is more than an incremental progress. It marks a clear shift from intent to execution in India’s circular packaging ecosystem. The Plastic Waste Management Rules have already mandated the use of recycled content in food packaging. What the industry lacked was credible and certified, food-grade capacity at scale. With 3 lakh tonnes of approved capacity, the ecosystem is now in a position to deliver on the 40 percent rPET requirement for FY 2026-27. These are FSSAI-approved, globally benchmarked facilities, aligned with international standards such as European Food Safety Authority (EFSA) and US Food & Drug Agency, ensuring that recycled PET used in food-contact application meets stringent safety and quality benchmarks. This directly addresses the biggest barrier to adoption, the trust in safety and consistency at scale. More importantly, this signals a structural shift beyond r-PET industry. Waste is being reintegrated as a regulated, high-quality industrial input, not treated as an externality. That is the foundation of a functional circular economy. This transition is well aligned with India’s broader sustainability goals in line with Mission LiFE, which emphasises responsible consumption and resource efficiency. This approval is thus set to be a game changer for India’s plastic recycling ecosystem.
Q. You mentioned this comes at a crucial time due to global supply uncertainties. How much can these plants realistically reduce India’s dependence on imported virgin plastic?
A. The timing is critical. Global supply disruptions and geopolitical uncertainties have already begun to impact the availability and pricing of virgin PET, making dependence on imports both costly and unreliable. In this context, the emergence of a strong domestic food-grade rPET ecosystem is a strategic advantage. With the current authorised capacities in place, India is now well positioned to cater to up to 50 per cent of the total PET requirement for bottling applications through recycled material. This is not just a sustainability shift - it is a supply chain correction. By substituting imported virgin PET with domestically produced rPET, the industry gains price stability, reduced import dependence, and greater control over raw material availability. It also insulates the packaging ecosystem from external shocks, which are becoming increasingly frequent. At a system level, this marks a move towards self-reliance in a critical industrial input, while simultaneously advancing circularity. The direction is clear: recycling is no longer just an environmental necessity; it is becoming an economic and strategic lever in an ever-adapting world.
Q. India is targeting 40 per cent recycled content in PET bottles by 2026-27. How much of this demand can the current capacity meet, and where do you still see shortfalls?
A. The approved capacity is sufficient to meet the 40 per cent recycled content requirement as per the PWM Rules. With 17 FSSAI-authorised plants now operational, the industry has the scale and regulatory backing needed to support this mandate. The real gaps lie upstream. First, feedstock availability and quality. Collection and segregation systems are still fragmented, which affects both volume and consistency of recyclable PET entering the system. Second, supply chain integration. The linkage between waste collection, aggregation, and recycling needs to become more structured and traceable to ensure steady input flows. Third, adoption discipline. While the mandate exists, consistent and timely adoption by all obligated entities will be critical for full capacity utilisation. At the same time, the outlook is strongly positive. Considering the current ecosystem and the government’s policy direction and regulatory reforms, industry confidence is rising. This is expected to drive fresh investments and further capacity expansion in the near term. The base is ready. The next phase is system-wide alignment and execution.
Q. Many consumers still question the safety of recycled plastic for food use. What specific processes or standards ensure that r PET from these plants is as safe as virgin plastic?
A. Safety has been the central focus in enabling food-grade rPET, and that concern is addressed through strict regulatory approval and globally benchmarked processes. All approved facilities have undergone FSSAI evaluation for food-contact applications, which requires adherence to defined safety, traceability, and quality standards. These plants operate using advanced decontamination and recycling technologies that are aligned with globally accepted frameworks such as US FDA and EFSA. The process ensures that post-consumer PET is thoroughly cleaned, decontaminated, and reprocessed to eliminate any contaminants, making the output chemically and functionally equivalent to virgin PET for food and beverage packaging Equally important is process control and validation. These systems are designed to ensure consistency at scale, with defined input standards, controlled processing conditions, and output testing protocols. In essence, food-grade rPET is a regulated, tested, and globally accepted material for food-contact use.
Q. With this additional capacity, what measurable impact do you expect on plastic waste reduction and recycling rates over the next 2 to 3 years?
A. With the government’s mandate for use of recycled inputs, supported by 17 FSSAI-authorised plants now operational, the ecosystem has both demand visibility and execution capacity. This is expected to strengthen collection and recycling flows, leading to a meaningful increase in recycling rates over the next two-to-three years. At the same time, more PET waste will be pulled back into the formal value chain, reducing leakage into landfills and the environment. Equally important is the investor confidence thus created. With regulatory clarity and demonstrated capacity, the sector is likely to see accelerated capital inflow, leading to further capacity expansion. Taken together, the ecosystem is expected to move towards higher recycled content adoption, with the potential to reach around 60 per cent utilisation levels in the medium term. Beyond domestic impact, the combination of scale, technology, and quality standards also positions India as a credible export hub for food-grade rPET.
Q. Beyond environmental gains, how is this initiative contributing to social impact?
A. The social impact of this transition is both direct and structural, particularly for the informal workforce that underpins India’s recycling ecosystem. A significant portion of PET collection in India is carried out by the informal sector, and nearly 50 per cent of their daily income is linked to plastic waste collection. As demand for food-grade rPET increases, this creates consistency in demand for waste bottles, translating into greater income stability and improved earning potential for this segment. Beyond income, this also drives job creation across the value chain: from collection and aggregation to sorting, logistics, and processing. As capacities expand and supply chains become more organised, employment generation is expected to increase both in informal and semi-formal sectors. Importantly, this shift lays the foundation for gradual formalisation. With stronger compliance requirements, traceability systems, and aggregation networks, parts of the informal workforce are likely to get integrated into more structured and organised systems over time. At a broader level, this contributes to inclusive economic participation, where sustainability-led growth is directly linked with livelihood generation. In terms of on-ground examples, the impact is currently visible more at a system level rather than isolated case studies. What is emerging is a more stable and demand-driven collection ecosystem, which is the first step towards long-term social and economic strengthening of the marginalised communities.
Q. What are the top challenges APR Bharat continues to face in scaling food-grade r-PET, and what role do brands, policymakers, and consumers need to play in addressing them?
A. The core challenge is not capability. It is ecosystem alignment. On the demand side, consistent adoption of the mandate by brands (both international and domestic) is critical. While the mandate exists, uniform and time-bound implementation by downstream players is essential to create a stable demand environment There are also economic and structural challenges. In parts of the value chain, recycled PET continues to face cost disadvantages due to taxation structures and inefficiencies, which can slow down large-scale adoption. For example, the GST bracket for recycled PET is same as that of virgin plastic. This essentially excludes the negative economic externalities of not recycling plastic. From a policy standpoint, the focus now needs to be on enforcement and ecosystem strengthening. Clear mandates have already been established - the next step is ensuring consistent implementation, compliance monitoring, reduced GST (5% bracket) for plastic waste value chain and support for infrastructure development, particularly in collection and aggregation. Brands have a central role to play by committing to sustained offtake of rPET and integrating it into their packaging strategies at scale. Consumers, while not direct participants in the value chain, influence outcomes through segregation behaviour and acceptance of recycled-content packaging, both of which are essential for long-term growth of the sector.
Q. Looking ahead to 2030, what would success look like for India’s circular packaging ecosystem, and what are the key risks that could slow this transition?
A. By 2030, success would mean a fully functional circular packaging ecosystem where recycled content is an established, standard industry practice. This would include high and consistent adoption of rPET across brands, a well-integrated collection and segregation system, and strong domestic recycling capacity operating at scale with global-quality standards. India would not only meet its internal sustainability targets but also emerge as a reliable global hub for food-grade recycled materials. Equally important would be the formalisation of the value chain, where informal collection systems are better integrated into structured networks, ensuring both efficiency and livelihood stability. However, the risks are equally clear. The biggest risk is inconsistent enforcement of existing mandates. Without uniform adoption, capacity remains underutilised and investor confidence weakens. Second is continued fragmentation in collection and segregation, which can constrain feedstock availability and impact quality. Third is economic viability. If cost structures remain misaligned, particularly due to taxation or pricing distortions, large-scale adoption can slow down. Finally, consumer perception and behaviour will play a role. Acceptance of recycled-content packaging and basic segregation practices are critical for the system to function efficiently. The direction has been established. The building blocks are in place. The pace of progress will now depend on how consistently the ecosystem executes.
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