At present, India's e-waste generation stood at 18.5 lakh tonnes a year, the study by Assocham said.
"Mumbai tops the list in generating e-waste followed by Delhi-NCR and Bangalore. Chennai, Kolkata, Ahemdabad, Hyderabad and Pune find a place in the ladder," it said.
It said that of the total waste, only 2.5 per cent gets recycled due to poor infrastructure and legislative framework.
"Over 95 per cent of e-waste generated is managed by the unorganised sector and scrap dealers in this market," the study said.
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It said that government needs to take steps for the sector such as strict implementation of rules, training of informal recyclers regarding proper recycling techniques and regulations to stop child labour.
"There is a strong need to bring out effective legislation to prevent entry of child labour into its collection, segregation and distribution," it said.
Computer equipment accounts for almost 70 per cent of e-waste material followed by telecommunication, electrical and medical equipment.