It has been seen in recent years that people are preferring to start their own businesses instead of joining multinational companies. This recent trend resulted in an abnormal hike in the number of newly registered businesses in the last three years. In India, 122721 new businesses were incorporated in 2020 while this number reached 167076 in 2022. This is a huge thirty-six per cent growth in just three years.
With such huge numbers and diversified interests of entrepreneurs, every industry is witnessing growth. One such industry is the recycling industry. The immense profit, availability of scrap and the encouragement of pollution control authorities are a few reasons that the scrap recycling industry is attracting new entrepreneurs to start a scrap business in India. And if that is not enough businesses even importing scrap from other countries to generate even more profits by reselling and recycling it. This is why, in this article, we will be talking about all the rules and regulations which you need to know before you start your Scrap Import Business in India.
What Is Scrap Import Business?
Many people may consider that Scrap and Waste are the same but it is not the case. Scrap is different from waste. Waste can be generated from any household or other institutions but scrap is generated during the manufacturing process. Waste can or cannot be recycled and used as raw materials but the scrap can again be used as raw material if processed appropriately. Waste can be electronic trash, broken plastic materials, metal equipment, or any other material that may or may not contain something that can be recycled and converted into a valuable and useful product. If this waste is segregated properly and reached to the recycling facility it can also be converted into raw material that can be used by the manufacturers.
In the manufacturing process of various items, the raw material goes through a long process that also involves trimming, shaving, turning and moulding. These processes generate a lot of unusable pieces of raw material. This useless trash is called Scrap. It can be metal, plastic, paper or any other material. When this scrap is bought from the manufacturing units, processed in a plant and sold to the manufacturers at a higher price, it is called Scrap Business. Many countries may not be able to process their scrap or it may not be economically beneficial for them, so they sell out their scrap to other countries. When this scrap is imported, processed and sold in another country, it is called Scrap Import Business.