The problem of Plastic pollution has been emerging as one of the important environmental and policy issues in India, mainly due to the rapid process of urbanization, increased consumerism and absence of proper waste management systems. Though India is one of the leading countries in producing Plastic waste globally, the current recycling rate of Plastics in India is comparatively very low, raising many environmental, health and economic issues. In this context, this paper attempts to conduct a critical analysis of the current status of Plastic recycling in India along with several obstacles in the process of Plastic recycling. This paper employs qualitative and analytical research method based on the secondary sources of information. The paper uses content and comparative analysis in the assessment of plastic waste production, recycling rates and the role of the formal and informal sectors. The results indicate that ineffective source segregation, low recycling facilities, high dependency on the informal sector, ineffective implementation of EPR and lack of modern recycling technology constitute the main barriers to the effective recycling. This article also highlights environmental degradation, health hazards arising from lack of recycling and economic costs that result from poor recycling rates. From The above discussion, This article comes up with solutions that could be adopted to enhance recycling process in the country. This article will Therefore contribute to the rising discussions with the aim of achieving sustainable Plastic waste management in the country and hence the adoption of the circular economy in India.