India's copper recycling sector, dominated by micro, small, and medium enterprises (MSMEs), is facing significant challenges due to the ongoing conflict in West Asia. The Material Recycling Association of India (MRAI) reported that nearly 23% of India's copper and copper alloy scrap imports originate from Gulf countries, which have been severely disrupted by the conflict. In the financial year 2024-25, India imported 350,000 tonnes of copper scrap, with 80,000 tonnes sourced from these regions. The conflict has led to shipping restrictions and increased costs, with shipping surcharges rising between $300 to $2,000 per container. Energy costs have also surged, with gas prices tripling from ₹40-45 (approximately $0.48-$0.54) to ₹120-130 (approximately $1.45-$1.57) per standard cubic meter, causing cash flow issues for many recyclers. The MRAI has urged the government to reduce the Goods and Services Tax (GST) on metal scrap from 18% to 5% and provide financial support similar to relief measures during the COVID-19 pandemic. Without immediate intervention, the viability of MSMEs in the copper recycling sector is at risk, threatening jobs and overall industrial output.