The National Productivity Council (NPC), an autonomous, multiparty, non-profit organization, aims to foster a productivity culture in India and is crucial to economic growth. Founded by the Indian Ministry of Commerce and Industry in 1958, the NPC celebrates its Foundation Day, also known as Productivity Day, on February 12th every year. Following this, it observes National Productivity Week from February 12-18.
Another important aspect of the NPC is its role as a constituent of the Tokyo-based Asian Productivity Organization (APO). This intergovernmental body has the Government of India as a founding member, further solidifying India’s commitment to bolstering productivity.
Circular Economy: A Pathway to Sustainability
From February 12-18, 2019, National Productivity Week was observed with the theme “Circular Economy for Productivity & Sustainability.” This marks an important shift from a linear economy to a circular one, which promotes growth while also prioritizing environmental sustainability. This transition presents unique opportunities for business models based on a make-use-return cycle.
A circular economy is restorative or regenerative by design, replacing the end-of-life concept with restoration and shifts towards renewable energy usage. It also eliminates the use of toxic chemicals which hamper reuse and return to the environment. The ultimate goal is to eliminate waste through superior design of materials, products, systems, and business models.
The Principles of Circular Economy
Four main principles form the foundation of a circular economy:
1. To design out waste.
2. Differentiation between consumable and durable components of a product.
3. Ensuring that energy required should be renewable in nature.
4. Replacing the concept of a consumer with that of a user.
Products are designed and optimized for a cycle of disassembly and reuse, setting it apart from disposal and even recycling. Consumables are made of non-toxic biological ingredients that can safely be returned to the biosphere, either directly or through consecutive uses. Durables, like engines or computers are designed from the onset for reuse and upgrade.
A crucial aspect is that the energy required to fuel this cycle should be renewable by nature. Also, instead of consumers, users are proposed in this model, calling for a new take on business-customer relations based on product performance.
Benefits and Challenges of the Circular Economy
| Benefits | Challenges |
|---|---|
| Job creation | Building circular economy knowledge |
| Increased productivity | Developing capacity |
| Reduced carbon emissions | – |
| Preserving valuable raw materials | – |
The circular economy presents significant potential benefits, including job creation, increased productivity, reduced carbon emissions, and the preservation of valuable raw materials. However, realizing this potential is not without challenges. Specifically, they lie in building circular economy knowledge and capacity. Despite these challenges, a circular economy offers a promising and sustainable pathway to creating value and promoting economic growth.
