India has introduced a rule requiring brands and producers to incorporate 40% recycled material in packaging.

The measure also sets out how companies can make up any shortfall against the mandatory recycled-content target for FY25-26.

Under the arrangement, unmet obligations from FY25-26, when the mandated level is 30%, may be carried forward for up to three consecutive years.

At least one third of any deferred requirement must be met in each year of the carry-forward period.

In a draft notification dated 3 June 2025, the Ministry of Environment, Forest and Climate Change (MoEFCC) had already proposed allowing brands and producers to offset gaps in meeting the 30 per cent r-PET requirement for food contact uses in 2025-26 over the following three years.

The Plastic Waste Management Rules set a 30% recycled-content obligation for rigid plastic packaging from 2025-26. The threshold is set to rise by 10 percentage points each year to reach 60% in 2028-29 and thereafter.

After the Centre notified mandatory requirements for 40% recycled content in food-grade packaging, the Association of PET Recylers Bharat said recyclers have set up facilities with combined capacity of about 300 thousand tonnes, backed by investments of Rs90bn ($968.4bn) to Rs 100bn ($1bn).

In March, the Food Safety and Standards Authority of India (FSSAI) issued final authorisation to 17 recycled polyethylene terephthalate (r-PET) manufacturing plants. 

The policy shift comes as packaging material availability has been affected by shortages linked to the conflict in West Asia.

FSSAI authorisation has been granted to plants operated by companies including Dodhia Industries, Ganesha Ecopet, JB Ecotex, Ribotl Solutions, and Srichakra Polyplast. The newly authorised units collectively add 300,000 tonnes of capacity to India’s circular packaging system.