Circular Economy Revolution: Paving The Way To Viksit Bharat 2047 Through Effective Waste Management
As per a study, India is poised to be the world third-largest economy by 2030, accounting for 8.5 per cent of the global GDP and the circular economy has the potential to fuel India's growth
By Abhishek Agashe
India's vision for Viksit Bharat 2047 envisions a sustainable and developed nation by its 100th year of independence. A pivotal element to achieve this goal is embracing a circular economy, where efficient waste management and Extended Producer Responsibility (EPR) solutions are fundamental and key drivers. As per a recent study by IBEF, India is poised to be the world third-largest economy by 2030, accounting for approximately 8.5 per cent of the global GDP and the circular economy has the potential to fuel India's growth while also providing significant environmental benefits, making a sustainable and resilient framework.
What is Circular Economy & its Necessity
While the concept of 'Circular Economy' is still nascent in India, but it is layman’s terms is a process where products are designed for durability, reuse and recyclability and thus almost everything gets reused, remanufactured, and recycled into a raw material or used as a source of energy. The full cycle to achieve complete circularity includes 6Rs, including Reuse, Repair, Refurbishment, Recover, Recycling of products and materials.
As the world population and economies grow, we need more raw materials to produce goods and in turn, we produce more waste. As long as the ‘economy’ is small compared to our natural ecosystem, there is not a problem. The natural system is both the source of raw materials as well as the ‘sink’ for the waste produced from utilising goods made from these raw materials.
But our economies are becoming larger, and we really need to start questioning the wisdom of extracting ever more raw materials and dumping more waste into the environment. Nearly 3 billion new consumers will enter the market in the next 20-30 years and they will want to enjoy the things we enjoy. The question is: how will we service these consumers with a natural resource base that is under pressure.
Today, due to the current rate of consumption, the demand for natural resources exceeds the extractable natural resources of the Earth. If the demand continues at this rate, we will need 1.8 Earth’s to satisfy our demand. With an estimated global population of 10 billion people and per capita consumption increasing by 71 per cent we will need 2.3 Earth's or nearly 130 billion tonnes of raw materials in 2050 to satisfy our needs.
There are very few opportunities to really lead change in the world, and have a net positive impact on the planet while doing so. We have such an opportunity to change the course of how humanity consumes products and materials. We have to lead the way in establishing closed loop supply chains by reusing, refurbishing, and recycling products and materials to keep them in use infinitely. By pioneering closed loop supply chains, we can reduce the cost of raw materials and democratise access to products and services for the entire human population. This will be one of the great needs for realising 'Viksit Bharat 2047'.
Benefits of embracing Circular Economy in macro level
The adoption of circular economy principles in India can have numerous benefits for the economy and the environment at a macro level addresses pressing challenges including as air pollution, water scarcity, and waste management as by reducing both waste and pollution levels, it aids in improving the health and well-being of millions of people, particularly those in low-income communities who are most vulnerable to environmental hazards.
The huge potential of Circular Economy
As per a recent study by Chase India in collaboration with International Council for Circular Economy titled 'Startups Accelerating Circular Economy for Sustainable Bharat' cited The global transition to a circular economy offers a value potential of $4.5 trillion by 2030, where India currently stands to capture 11 per cent of this potential, equating to half a trillion dollars, denoting its humongous potential. The circular economy could generate up to 1.4 crore jobs in the next 5-7 years and create lakhs of new entrepreneurs.
Roadblocks
In India, only 20 per cent of goods are recycled, compared to 70% in Europe. As the third-largest emitter of greenhouse gases, India contributes 9.2 per cent to global emissions. The prevalent linear economy — focused on extraction, production, consumption, and disposal — causes significant environmental degradation and hinders sustainability goals.
India faces a growing e-waste crisis, generating over 2 million tons annually, threatening public health and wasting valuable resources. Furthermore, lack of awareness of circular economy principles, insufficient infrastructure and technology for waste management and recycling, and the high costs of implementing circular practices, especially for SMEs are some of the key challenges acting as major roadblocks
Govt. Initiatives accelerating the Circular Economy
While both the government along with industry bodies including NITI Aayog, ICCE & India Circular Economy Forum (ICEF) have kept no stones unturned and has demonstrated significant advancements for circular economy model in the previous Budget including :-
Energy Transition Budget: Rs 35,000 crores allocated for energy transition, promoting green growth.
Biogas and Bio-CNG Plants: Rs 10,000 crores for 300 community-based biogas plants and 200 bio-CNG plants, with 75 in urban areas.
National Green Hydrogen Mission: Rs 19,700 crores to drive low carbon economy, cut fossil fuel reliance, and lead in green hydrogen technology.
Battery Energy Storage Systems with capacity of 4,000 MWH will be supported with Viability Gap Funding.
Also putting impetus on EPR and continuously coming out with revised EPR policies, the government has ensured to enhance India's EPR compliance system through key regulations and initiatives along the way since the inception back in 2022.
Some key government initiatives include Green Procurement Policy (GPP), National Resource Efficiency Policy (NREP), Mission LiFE (Lifestyle for Environment), Swachh Bharat Mission, GOBARdhan Scheme to name a few and such initiatives were timely monitored by key industry bodies and think-tanks like NITI Aayog
Key Trends to key an eye out for in Waste Management
Technological Innovations: Technological advancements like AI, IoT are set to transform waste management by optimising collection and sorting. We also need significant investments in R&D for recycling technologies to emerge that can help maintain and accentuate the quality of recycled outputs.
Decentralised Infrastructure Creation: Decentralised collection and primary processing infrastructure needs to be created to ensure seamless collection and maintaining quality and segregation levels at the primary level.
Waste-to-Energy Projects: Waste-to-energy projects are becoming popular for converting non-recyclable waste into energy through incineration, gasification, and anaerobic digestion. These projects reduce waste volume and provide renewable energy, supporting energy security and sustainability
Extended Producer Responsibility & its application to power circularity
EPR policy that holds producers accountable for the entire lifecycle of their products, especially for take-back, recycling, and final disposal, will play a key role in emphasising on eco-design, encouraging producers to create products that are easier to recycle and have a lower environmental impact. This involves using materials that can be easily separated and recycled, reducing hazardous substances, and designing for durability and reusability.
The Take-back programs will become more common, enabling producers to reclaim their products after consumer use. These programs will facilitate the collection and recycling of end-of-life products, reducing environmental impact. Furthermore, effective take-back programs will aid in creating a robust collaboration between producers, retailers, and consumers will eventually assist with bolstering the recycling infrastructure.
Achieving the goals of Viksit Bharat 2047 is an ambitious target set by the government, which can be a reality only with a concerted collaborative effort between the government, industry bodies, key stakeholders and particularly startups, who have surprisingly have been the driving force in the recent past with their speed and ability to innovate leveraging modern technologies and redefining the industry with its innovative R&D capabilities.
The author is the co-founder and CEO at Elima.
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