Despite the growing concerns surrounding food packaging waste, India still lacks a well-defined and effectively enforced policy framework to tackle this issue. Multilayered packaging, constituting 35 % of total packaging in India, is currently deemed unrecyclable due to its complex structure and is currently landfilled. While countries like the UK, Belgium, France, Italy, and Canada have successfully implemented measures such as landfill taxes and "pay-as-you-throw" policies, India has yet to establish strict regulations and economic incentives to promote sustainable waste management. The absence of strong Extended Producer Responsibility (EPR) enforcement, inadequate eco-modulation strategies, and limited consumer incentives such as reduced GST on recycled products or rewards for eco-conscious practices highlight the urgent need for India to bridge this policy gap and adopt a more structured approach towards a circular economy. Strengthening of regulatory frameworks and a collaborative approach involving the government, producers, informal sector, and consumers is essential for developing an efficient waste management system. Through this review, we aim to highlight successful global strategies and motivate the adoption of similar policies in India to mitigate the growing environmental threat posed by food packaging waste.