From waste to wealth: India’s circular shift gains momentum

Circular economy or circularity is a system designed to minimise waste and maximise resource efficiency. This is achieved through its three core principles: eliminating waste entirely, circulating products and materials in a closed loop, and supporting regeneration. This means products are kept in continuous circulation and are reused and repaired which reduces the need to extract new resources.

A circular economy, on the other hand, creates a closed loop or circular system where products are made better and used longer, producing long-term environmental and economic benefits. Unlike recycling, which begins at the end of a product’s life—often with limited impact at scale—a circular economy ensures that, from the outset, products are designed in a way that maximises usage and minimises wastage throughout their life cycle.

It is also regenerative and restorative by design. Restoration and regeneration imply that after their life cycle ends, materials used to make a product can seamlessly merge with natural systems, becoming resources again. For example, in food systems, organic waste like food scraps can be used as animal fodder or composted to regenerate soil health, enriching it with nutrients and promoting sustainable agriculture. In the textile sector, fabrics can be broken down into raw fibers and respun to produce new textiles, reducing the need for virgin materials.

Similarly, in construction, materials such as concrete, steel, and bricks can be reclaimed and reused in new building projects, decreasing the demand for raw resource extraction.

Circularity is crucial for India’s sustainable development, energy security, and climate action goals. Embracing a circular economy can foster the growth of new industries, such as recycling, remanufacturing, repurposing, creating jobs, and contributing to sustainable development.

India’s circular economy could generate a market value of over $2 trillion and create close to 10 million jobs by 2050. Through a radical departure from the traditional ‘take, make, waste’ production and consumption models, the circular economy could provide a potential $4.5 trillion in additional economic output by 2030 world over.

India’s rapid economic growth and urbanisation have led to significant challenges, such as resource depletion, environmental degradation, and increased waste generation. To address these pressing issues, India must transition to a Circular Economy.

This approach promotes the reuse, remanufacturing, and recycling of products and materials to maintain their highest utility and value. By doing so, it not only reduces environmental impact but also enhances sustainability, economic resilience, and resource security.

The Indian government has taken proactive steps toward this transition, establishing the Circular Economy Cell in NITI Aayog and implementing sector-specific action plans and policies aimed at promoting resource efficiency and sustainable practices. Initiatives such as the Swachh Bharat Mission, Jal Jeevan Mission, and Vehicle Scrapping Policy underscore India’s commitment to the Circular Economy principles, focusing on waste reduction, proper disposal, recycling, and sustainable resource management.

Unlike traditional recycling efforts, a Circular Economy aims to redesign products for longevity, facilitate reuse and remanufacturing, and establish closed-loop systems to minimise waste and resource extraction.

A project supported by the Global Environment Facility (GEF) and implemented by the United Nations Development Programme (UNDP), in partnership with the Ministry of Electronics and Information Technology, Government of India, will support India’s transition to a circular economy in the electronics sector by ensuring the environmentally sound management of e-waste, one of the country’s fastest growing waste streams.

This five-year initiative is designed to reduce hazardous material use, recover valuable materials, and improve resource availability in the electrical and electronics sector.

India is the world’s third-largest generator of e-waste. And more than 80% is still processed in the informal sector using unsafe methods that release toxic chemicals into the environment. Formal recycling remains limited, exposing workers and communities to serious health risks.

The project is expected to benefit 6,400 people directly and reduce environmental and health risks. It will prevent the release of 8,000 tonnes of toxic heavy metals such as mercury, lead, cadmium, and chromium; eliminate 25 tonnes of hazardous flame retardants; and cut 600,000 tonnes of carbon dioxide (CO₂)-equivalent emissions.

India’s circular economy is set to generate a market value exceeding $2 trillion and create close to 10 million jobs by 2050.

India’s commitment to transitioning towards a circular economy is evident in its policy framework, ambitious targets, and innovative waste management strategies. With a potential market value of over $2 trillion and job creation in the millions, the shift towards sustainable economic models presents significant opportunities for businesses, policymakers, and environmental advocates alike.