Reduction of import duty on copper scrap from 5% to 2.5% announced in Union Budget 2021-22 was meant to boost recycling of copper in the country.
This is expected to have economic benefits and also has employment generation potential.
Recycling of metal improves the resource efficiency as there is no loss of property, said an expert. “It is economically viable, energy efficient and environment friendly. Metal produced today is scrap for tomorrow and thus again becomes a resource.”
Reduction in import duty on copper scrap is bound to promote recycling in the country as the basic raw materials made out of copper will become economical.
By utilizing copper scrap, domestic companies can improve competitiveness and profitability.
Recycling based innovations can also give industries an edge in the export market.
New industries can be created in the recycling sector with focus on innovative design and manufacturing from recycled material. Reduced import dependence for critical minerals will help to improve country’s trade balance and promote economic stability.