Government Policies and Business Regulatory Environment

Environmental Laws in India

India’s environmental law framework is primarily governed by the Environment (Protection) Act, 1986, the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution) Act, 1981, the Forest (Conservation) Act, 1980 as amended, the Biological Diversity Act, 2002, and sector-specific waste-management rules. Regulatory oversight is exercised by the Ministry of Environment, Forest and Climate Change, the Central Pollution Control Board, State Pollution Control Boards, Pollution Control Committees, and specialized adjudicatory forums such as the National Green Tribunal.

As of 2026, environmental compliance in India is increasingly shaped by digital approvals and monitoring, extended producer responsibility obligations, climaterelated market mechanisms, circular-economy regulations, contaminated-site remediation, and stricter accountability for non-compliance. Businesses should assess environmental permissions at the projectplanning stage, including environmental clearance, consent to establish, consent to operate, hazardous waste authorization, EPR registration, forest and wildlife approvals, groundwater permission, and state-specific industrial siting conditions.

Environmental approvals and project compliance

Industrial, infrastructure, mining, real-estate, energy, chemical, pharmaceutical, logistics and manufacturing projects may require prior environmental clearance under the environmental impact assessment framework, in addition to consents from pollution control authorities. The approval process has become more technology-enabled through online portals for environmental, forest, wildlife and coastal regulation zone permissions, while regulators continue to focus on compliance monitoring, environmental management plans, public-hearing obligations, emission and effluent standards, and post-clearance reporting.

Waste management and EPR

India has expanded extended producer responsibility across key waste streams such as plastic packaging, e-waste, batteries, waste tires, used oil, and hazardous and other wastes. The Plastic Waste Management (Amendment) Rules, 2025 require producers, importers and brand owners to provide specified product information through bar-code or QR code systems from 1 July 2025, while the Battery Waste Management Amendment Rules, 2025 strengthen traceability by requiring EPR registration numbers through bar-code or QR code labeling, subject to filings on the CPCB portal.

The Plastic Waste Management (Amendment) Rules, 2026 further refine recycling, end-of-life disposal, and plastic waste processor obligations, reflecting India’s shift from disposal-based compliance to traceable circular-economy obligations. Businesses placing covered products or packaging in the Indian market should maintain EPR registrations, category-wise data, procurement and recycling certificates, agreements with recyclers or processors, and periodic returns through the relevant CPCB portals.

Carbon markets, green credits and climate-linked regulation

India is operationalizing market-based climate instruments alongside traditional environmental regulation. The Carbon Credit Trading Scheme, 2023 established the framework for the Indian Carbon Market and was amended to introduce an offset mechanism for voluntary climate mitigation projects. In 2025, detailed procedures and methodologies were approved for sectors including renewable energy, green hydrogen, industrial energy efficiency, landfill methane recovery, and mangrove afforestation and reforestation. The Green Credit Rules, 2023 also provide a framework to incentivise voluntary environmental actions, with plantation and eco-restoration modalities revised in 2025 and continuing to operate through a dedicated digital portal.

Contaminated sites and remediation

A significant 2025 development is the notification of rules for management of contaminated sites, creating a structured framework for identification, assessment, declaration, remediation planning, implementation and oversight of polluted land and water sites. State pollution control authorities are expected to identify and assess suspected contaminated areas, while responsible persons may be required to prepare and implement remediation plans. Where responsibility cannot be attributed, public authorities may be required to coordinate remediation funding and implementation.

Business implications

Companies operating in India should treat environmental compliance as an ongoing board-level and operational risk area. Practical measures include maintaining a compliance calendar, mapping all permits and renewals, reviewing waste-stream obligations, validating EPR certificates, monitoring emissions and effluents, preparing site-level environmental management plans, conducting environmental due diligence for acquisitions and leases, and documenting corrective action. Non-compliance can result in closure directions, environmental compensation, penalties , prosecution, reputational harm, and project delays.

Get in Touch
Virender Bhasin
Virender Bhasin
Executive Director
Entity Set-up & Management

Subscribe to our Newsletter

We are constantly working on sharing relevant alerts & publications to keep you informed on the latest developments.

Get Your Guide on Doing Business India