In most developing countries, waste is managed by government bodies who allocate a large amount of resources but rarely obtain the desired results. Taking this problem into account, this article explores the relationship between environmental policy and firms engaged in solid waste management by studying the case of four firms in the SWM industry in India. Five factors could have an impact on SWM firms in India—demand for waste, awareness among waste generators, segregation as a habit, encouraging decentralisation, and state support. Appropriate policy measures to create awareness about the demand for waste can become a powerful addition to the existing tools since market forces can drive the waste management activity more effectively.