Mechanical recycling is an essential tool in an environmentally and economically sustainable circular economy of plastic (CEoP). The existing mechanical recycling scenario in India is depicted. The semi-structured interviews with the mechanical recyclers were conducted in five clusters to obtain primary data. Results indicated that the plastics waste (PW) is productively recycled into various recycled products. There is a dominance of conventional sorting methods and recycling machineries. Post-consumer (PC) PW requires larger operating expenses and consumes more utilities compared to post-industrial (PI) PW. Recycled products are manufactured according to the demands of customers and technicalities such as recyclability and quality are often neglected. The actions such as the promotion of PI recycling, industrial symbiosis, and incentivization of operating expenses can positively affect the mechanical recycling process. India is having huge potential for the creation of CEoP, nevertheless, substantial investments in research, infrastructure development and a regulatory framework are required for mechanical recycling technologies.