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Circular Economy and Resource Efficiency

Circular Economy and Resource Efficiency

India is increasingly treating waste as an economic resource rather than a disposal problem. The shift is being driven by recycling, biotechnology, green technologies and public cleanliness initiatives. The recent emphasis on resource efficiency marks how discarded materials can generate revenue, support industry and create new livelihoods while advancing sustainability goals.

Circular Economy Gains Momentum

The circular economy model focuses on keeping materials in use for longer through reuse, recycling and recovery. It reduces dependence on virgin raw materials and lowers environmental pressure. In India, this approach is gaining policy and industrial attention as a pathway to sustainable growth.

Revenue from Scrap and E-Waste

  • Government-led cleanliness and scrap disposal efforts have generated over Rs 4,000 crore.
  • E-waste collection and processing form a major part of this revenue.
  • The figure shows the commercial value of organised waste recovery systems.
  • Industries are increasingly finding returns from materials earlier treated as liabilities.

Waste-to-Value Applications

  • Used cooking oil is being converted into biofuels.
  • Plastic waste is being reused in industrial applications.
  • Steel slag and other by-products are being used in road construction.
  • Such innovations reduce landfill burden and support resource efficiency.

Policy, Innovation and Net-Zero Linkage

The circular economy is expanding opportunities for households, informal workers, startups and MSMEs. It also supports green jobs and new business models in waste management and sustainable production. Public participation, behavioural change and scientific innovation remain central to scaling this transition. The model is aligned with India’s broader climate ambition of achieving net-zero emissions by 2070.

Last Modified: April 27, 2026

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