In a major push toward building a circular economy, the government has notified final guidelines mandating the use of 40% recycled content in food-grade PET packaging. The new rule will come into effect from April 1, 2026, reinforcing the country’s commitment to sustainable resource management and plastic waste reduction. The policy aligns with Prime Minister Narendra Modi’s circular economy vision, which aims to promote recycling, reduce dependence on virgin plastic, and strengthen India’s domestic recycling ecosystem.
Policy to Boost Sustainable Packaging and Reduce Import Dependence
According to Goutham Jain, Director General of APR Bharat, the mandate represents a significant milestone for India’s sustainability agenda. The move comes at a time when global supply chain disruptions and geopolitical tensions are already affecting the availability and pricing of virgin PET. As a result, reliance on imported raw materials has become both costly and uncertain, making the shift toward recycled PET (r-PET) even more important for the packaging industry. Jain noted that increasing the use of recycled materials will help reduce supply vulnerabilities while supporting domestic recycling infrastructure.
FSSAI Approves New r-PET Recycling Capacity
Earlier in March 2026, the Food Safety and Standards Authority of India (FSSAI) granted authorization to 17 recycled PET manufacturing plants across the country. These approvals have unlocked an estimated 3 lakh tonnes of annual recycling capacity, strengthening India’s ability to meet the growing demand for recycled packaging materials in the food and beverage sector. The newly approved facilities will play a key role in supporting the government’s recycling mandate while ensuring compliance with food safety standards.
MoEFCC Guidelines and Implementation Timeline
The Ministry of Environment, Forest and Climate Change (MoEFCC) issued detailed guidelines outlining the phased implementation of recycled content requirements. Under the policy, 30% recycled PET (r-PET) must be used in rigid plastic packaging during FY 2025–26, from April 1, 2026, the requirement will increase to 40% recycled content in food-grade PET packaging.
The ministry has also allowed brands and producers to carry forward any shortfall in meeting the 30% r-PET target for FY 2025–26 for up to three consecutive years. However, companies must achieve at least one-third of the carry-forward target each year to remain compliant. This flexible mechanism is designed to help industry players gradually adapt to the new requirements while expanding recycling capacity.
Industry Welcomes Circular Economy Push
Industry stakeholders have broadly welcomed the government’s move, viewing it as a step toward strengthening India’s circular packaging economy. “We wholeheartedly welcome the government’s progressive step, which reinforces confidence in the vision of building a circular economy,” Jain said. He added that with the currently authorized recycling capacities, India is well positioned to meet up to 50% of the PET requirement for bottling applications using recycled material. The mandate is also expected to stabilize supply chains, particularly at a time when global disruptions have affected the availability and pricing of virgin PET.
Boost for Recycling Ecosystem and Plastic Waste Reduction
Experts believe the new policy will significantly accelerate the adoption of recycled PET across the food and beverage industry. As demand for high-quality recycled materials grows, it will encourage further investment in recycling infrastructure while strengthening the domestic circular economy. In addition, the increased use of recycled plastics will help reduce plastic waste leakage into the environment and lower dependence on virgin plastic production.
Investments in Food-Grade r-PET Recycling Facilities
The policy builds upon the Plastic Waste Management Rules, 2016, which already mandate the gradual increase of recycled content in rigid plastic packaging. Under the rules, 30% recycled content is required from 2025–26 The requirement will increase by 10% annually and the target will reach 60% recycled content by 2028–29.
To support this transition, 15–18 food-grade r-PET recycling facilities have been established across India. These plants together provide around 3 lakh metric tons of annual recycling capacity, representing investments of approximately ₹9,000–10,000 crore. Many of these facilities have adopted state-of-the-art recycling technologies and operate according to standards approved by the European Food Safety Authority (EFSA) and the US Food and Drug Administration (FDA).
Advancing India’s Circular Economy Vision
The new recycled content mandate is expected to play a crucial role in advancing India’s circular economy goals. By promoting large-scale use of recycled materials in packaging, the policy encourages resource efficiency, sustainable manufacturing, and reduced plastic pollution. As reported by biznewsdesk.com, as the regulations take effect over the coming years, India’s packaging industry will likely see increased investments in recycling technology, supply chain improvements, and greater collaboration between policymakers and industry stakeholders to build a more sustainable plastics ecosystem.
