NITI Aayog Report: Turning Old Tyres into New Wealth in India

K​ey Highlights

• India generates ~3 million tonnes of waste tyres annually
• NITI Aayog releases circular economy report on waste tyres
  
• ₹7,500 crore lost yearly due to poor tyre recycling
  
• Focus on high-value recycling, retreading, and clean tech

India’s growing waste tyre problem is adding to pollution through dumping and open burning. To tackle this, NITI Aayog has released a report promoting reuse and recycling of old tyres into roads, rubber products, and fuel.

The report, “Enhancing Circular Economy of Waste Tyres in India,” was launched on January 22, 2026, in Jaipur, aiming for cleaner and smarter waste management.

Why Is This a Big Problem in India?

India makes a lot of tyres. We are one of the top countries in tyre production. In 2024, India made about 4.2 million tonnes of tyres. But every year, around 1.6 million tonnes of old tyres come from inside India, and we import even more (about 1.4 million tonnes). So total waste tyres are huge, around 3 million tonnes every year!

If we keep doing this, the problem will get bigger. Tyre use is growing fast because more people buy cars and bikes. By 2032, tyre waste could double!

What Does the Report Say?

The report says India is losing a lot of money about ₹7,500 crore every year because we do not recycle tyres in the best way. We could save money by making good products from old tyres instead of buying new materials from other countries.

Here are the main ways to recycle tyres:

Pyrolysis: Heat tyres without air to make oil, carbon black, and steel. This is popular, but many plants are not clean.

Crumb Rubber: Grind tyres into small pieces for roads, playgrounds, or sports floors.

Reclaim Rubber: Make rubber again for new products like mats or shoe soles.

Retreading: Put new rubber on old tyres so they can be used longer. This saves oil and reduces waste.

​The best way is to make high-quality products like recovered carbon black (rCB) for new tyres or crumb rubber for strong roads. But right now, we make mostly low-quality stuff.

Rules and Challenges

The government has rules called Extended Producer Responsibility (EPR) from 2022. Tyre companies must collect and recycle old tyres they sold before. They register on a website and get credits for recycling.

But there are problems:

•  Rules give different points for different products. Some easy, low-value recycling gets more points. This is not fair.

•  Many small, illegal factories work without rules.

•  No strong standards for recycled products, so big companies do not buy them easily.

•  High tax (18% GST) on recycled goods makes them costly.

The report says we should fix these things quickly.

Good Ideas from the Report

NITI Aayog gives simple but strong suggestions:

1. Make better rules for EPR:  Give more points for high-quality recycling like rCB or good crumb rubber.

2. Bring small factories into the system:  Help them follow rules, give training, and reduce old fines.

3. Lower taxes: Bring GST down to 5% on recycled tyre products.

4. Set quality standards: Make Indian standards (like BIS) for tyre oil, carbon black, etc., so everyone trusts the products.

5. Promote retreading:  Encourage more tyre retreading for trucks and cars. This can save a lot of oil and CO2.

6. Use government buying power: Ask government projects (like road building) to use recycled rubber.

If we do these things in the next 1–2 years, India can:

• Save billions of rupees.

•  Create more green jobs.

•  Reduce pollution.

•  Depend less on imported rubber and oil.

A Simple Story for All of Us

Imagine your old bike tyre. Instead of throwing it away:

• It can become part of a strong, long-lasting road in your city.

• Or rubber for a new playground mat where kids play safely.

• Or even material for a new tyre!

​Everyone can help,tyre companies, government, recyclers, and you. Buy products made from recycled rubber when you can. Support clean recycling.

This report is like a map to a cleaner, richer India. By turning waste tyres into useful things, we protect our environment and grow our economy. It is a win-win for everyone.

The future is circular. Use, reuse, and recycle. Let's start today!