Syllabus: GS3/Economy
Context
- The Ministry of Electronics and Information Technology (MeitY), hosted the release of the ‘I Am Circular’ Coffee Table Book, curetted by the International Council for Circular Economy (ICCE).
About
- The ‘I Am Circular’ Coffee Table Book features 30 of India’s most promising innovations identified through the nationwide ‘I Am Circular’ Challenge.
- It is an initiative designed to discover and amplify breakthrough solutions rooted in the principles of the circular economy.
| International Council for Circular Economy (ICCE) – It is a non-profit organization launched in 2020 by India. – It is dedicated to promoting and accelerating the transition to a circular economy both nationally and globally. – ICCE acts as a think tank, networking platform, and policy influencer, fostering collaboration across industries, governments, academia, and civil society. |
What is Circular Economy?
- The circular economy (CE) is a model of production that prioritises waste reduction or elimination at all stages of the product life cycle, from raw materials extraction and manufacturing to disposal and reuse.
- Core Principles of the Circular Economy:
- Products and systems are designed to reduce or eliminate waste from the beginning.
- Through reuse, repair, remanufacture, and recycling, products are kept in circulation for as long as possible.
- The system supports and restores natural resources rather than depleting them—like composting food waste to enrich soil.
- Benefits:
- Reduces environmental impact and pollution.
- Conserves finite resources.
- Stimulates innovation and new business models.
- Can create new jobs and economic opportunities.
India’s Circular Economy Vision and Potential
- India’s circular economy could generate over $2 trillion in market value and create up to 10 million jobs by 2050.
- Globally, the circular economy could unlock $4.5 trillion in economic output by 2030.
- India has proposed to host the World Circular Economy Forum in 2026. The 2025 forum will be held in São Paulo, Brazil.
Opportunities for India
- High Economic Potential: The growth of India’s circular economy has the potential to drive economic growth, job creation, and innovation focused on sustainability.
- Environmental and Resource Efficiency: It reduces resource extraction and environmental degradation and also aligns with UN Sustainable Development Goals (SDGs), the Paris Agreement, and the UN Decade on Ecosystem Restoration (2021-2030).
- Macro and Industry-Level Gains: Transition to the circular economy will enhance systemic efficiency.
- It will also support government and industry performance in sustainability benchmarks.
Challenges
- Fragmented and Inefficient Waste Infrastructure: India lags behind in capacity across supply chains for waste collection, material recovery, and (re)processing.
- Limited Private Sector Incentives: There is a lack of business incentives for the private sector for moving towards a circular economy.
- Underutilized Informal Sector: Informal waste workers are not integrated into formal systems this leads to inefficiencies, resource leakages, and health risks.
India’s Key Steps and Commitments
- Swachh Bharat Mission (SBM-U): It strengthens urban waste management, under SBM-U, India has achieved 108.62% success in household toilet construction and 80.29% of solid waste in India is being processed successfully.
- GOBAR-Dhan Scheme: Promoting waste-to-wealth initiatives through biogas and organic waste processing.
- This scheme currently covers 67.8% of the total number of districts in India, with 1008 biogas plants being fully operational.
- E-Waste Management Rules (2022): Strengthening circular economy practices in electronic waste disposal.
- For FY 2024-25, the quantity of e-waste collected and recycled stood at 5,82,769 MT and 5,18,240 MT respectively.
- Extended Producer Responsibility (EPR) for Plastic: Encouraging industries to take accountability for plastic waste. India banned single use plastic in 2022.
- Circular Economy Cell (CE Cell) was constituted in NITI Aayog in 2022 as a dedicated unit to work in the area of Circular Economy.
- Regional 3R and Circular Economy Forum in Asia and the Pacific: India is a part of the forum and hosted the 12th Regional 3R and Circular Economy Forum in March 2025.
- It was launched in 2009 to promote sustainable waste management, resource efficiency, and circular economy principles.
Conclusion
- India stands at a critical juncture where the shift from a linear to a circular economy is not just a sustainability imperative but also a powerful economic opportunity.
- With its growing population, rapid urbanization, and rising consumption, embracing circularity can help India reduce environmental degradation, create jobs, and unlock economic value.
- However, this transition demands a comprehensive approach—integrating policy reforms, infrastructure development, technological innovation, and inclusive practices that recognize the role of the informal sector.
Source: PIB
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