A NITI Aayog report titled Enhancing Circular Economy of Waste Tyres in India explores the challenges and opportunities in managing End-of-Life Tyres (ELTs) to advance India’s circular economy goals
India, the world’s third-largest tyre producer and consumer, generates about 1.5 to 2 million tonnes of waste tyres each year. Much of this is recycled by informal sectors using harmful methods like open burning or low-quality pyrolysis. The Extended Producer Responsibility (EPR) Regulations for Waste Tyres, introduced in 2022, require producers and importers to meet recycling targets via a digital credit system, aiming to formalize and regulate tyre recycling.
The transition to a circular economy relies on diversifying the end-use applications of waste tyre derivatives:
- Material Recycling: Waste tyres are processed into Crumb Rubber Modifiers (CRM) for bituminized roads, which improve road durability and heat resistance. Other applications include reclaimed rubber for new tyres and crumb rubber for athletic tracks and flooring.
- Energy Recovery: High-quality Tire Derived Fuel (TDF) is utilized in cement kilns as a co-processing fuel, effectively replacing coal and reducing the overall carbon footprint of heavy industries.
- Advanced Thermochemical Conversion: Modernized pyrolysis plants convert tyres into Pyrolysis Oil, Carbon Black, and Steel Wire, providing high-value industrial raw materials.
Overcoming Structural and Regulatory Barriers The report identifies several challenges that hinder the full potential of tyre circularity:
- Fragmented Collection: The lack of a structured reverse logistics network leads to the leakage of waste tyres into the informal economy.
- Standardisation Gaps: There is an urgent need for quality standards for recycled products like pyrolysis oil to ensure market acceptance and safety.
- Fiscal and Market Incentives: Currently, virgin raw materials often remain more cost-competitive than recycled alternatives, necessitating targeted green procurement policies.
What is “Extended Producer Responsibility” (EPR) for waste tyres? EPR makes producers and importers legally responsible for their products’ entire lifecycle, especially after consumer use. In India, tyre producers must buy EPR Credits from registered recyclers via a CPCB portal to meet recycling targets, encouraging formal recycling.
Policy Relevance
The formalization of the waste tyre sector is a key component of India’s broader G20 Resource Efficiency and Circular Economy Coalition (RECEC) commitments.
- Strategic Resource Autonomy: Enhancing domestic recycling reduces India’s reliance on imported natural rubber and crude oil derivatives used in tyre manufacturing.
- Decarbonizing Heavy Industry: Scaling co-processing in cement kilns offers a scalable solution for waste disposal while helping energy-intensive sectors meet their emission reduction targets.
- Green Infrastructure: Integrating crumb rubber into the National Highways Development Project (NHDP) directly supports the Ministry of Road Transport and Highways’ goal of building “sustainable and long-lasting” road networks.
Follow the full report here: Enhancing Circular Economy of Waste Tyres in India







