Building a Circular Economy for a Sustainable Future: Lessons from India
Dr Nityesh Bhatt
Director I/c, Institute of Management, Nirma University
Concepts like circular economy and sustainability are not just buzzwords in the modern world but have become necessity due to rising pollution, growing temperature, and climate change. According to the World Meteorological Organization (2024), the last decade has been the hottest on record, with 2023 seeing a global temperature rise of 1.55°C above pre-industrial levels. The UNEP Emissions Gap Report (2023) warns that current global efforts may lead to a 2.5–2.9°C rise by the end of the century, far beyond the Paris Agreement target. Every year, nearly eight million tonnes of plastic end up in oceans, while India alone generates 62 million tonnes of waste annually, of which only 30% is treated. These alarming facts show why smarter solutions like circular economy and sustainability are urgently needed.
Concept of Circular Economy: Imagine if everything we used was never thrown away but reused, repaired, or recycled to make something new. That’s what the circular economy is all about! It moves away from the old system of “take, make, and throw away” (called a linear economy) and encourages us to “reduce (consumption), reuse (new ways to use instead of discarding), repair (extending lifespan), refurbish (restoring by replacing worn out parts ex. Electronic items) and recycle (conversion of waste into new products).” In a circular economy, waste is seen as a valuable resource. Products are designed so that they can be reused, repaired, or made into something new.
Sustainability Fundamentals: Sustainability means using Earth’s resources in a way that they are available for future generations too. The idea is to balance the needs of people, the planet, and the economy (profit) or in other words triple bottom line. As defined by the United Nations, sustainability is “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
The United Nations has adopted 17 Sustainable Development Goals (SDGs) in the year 2015 as the global blueprint to achieve a sustainable future by 2030. These goals range from No Poverty (SDG 1) and Zero Hunger (SDG 2) to Quality Education (SDG 4), Affordable and Clean Energy (SDG 7), Climate Action (SDG 13), and Partnerships for the Goals (SDG 17). The circular economy contributes directly to several SDGs, particularly those focusing on responsible consumption, industry innovation, sustainable cities, and climate action.
Circular Practices in India
Even before the term “circular economy” became popular across the globe, Indian households practiced this idea everywhere. For example, people would reuse old clothes as rags or bedding, repair electronics, or compost food waste. But with rapid development and urbanisation, India also started creating a lot more waste. However, the country is making efforts to return to its age-old circular practices through the interventions of civil society, government rules, new technologies, and students. Here are some important areas where India is applying the circular economy:
E-Waste
India is the third-largest producer of electronic waste. To handle this, the government made new rules where companies must take back and safely recycle their old products. This system is called Extended Producer Responsibility (EPR).
Plastic Waste
India creates more than 3.5 million tonnes of plastic waste every year. To reduce this, single-use plastics like straws, plastic plates, polythene bags have been banned. Many companies are now making eco-friendly alternatives like biodegradable plates and cloth bags.
Agricultural Waste
Instead of burning crop waste- which causes pollution – farmers are encouraged to turn it into bio-fertilizer, biogas, or compost. This is supported by the National Bio-Energy Mission.
Textile and Fashion
India’s textile sector has long followed circular ideas. Old clothes are upcycled, natural dyes are used, and handlooms are promoted. Many modern brands now focus on sustainable fashion.
Government Support and Challenges
The Indian government is supporting the circular economy through programmes like:
However, numerous challenges still exist which can be categorised into four categories i.e., financial, social, institutional and technical. There is not enough waste management infrastructure in smaller towns, and many workers in the informal recycling sector are untrained and unsafe. Also, many people are not yet aware of sustainable habits like reducing plastic use or separating waste at home. This demands attention from the civil society and the younger generation can play a pivotal role as an influencer for the families and society. In schools and colleges, targeted drive is required for capacity building and attitude formation for the mother nature. In this regard, following project of Institute of Management, Nirma University is an encouraging initiative:
KODECET Project: Learning for the Future
To spread awareness among the students and professionals, with support from the European Union, Nirma University and five partner universities (from India, Thailand, Finland and Austria) have embarked upon the KODECET (Knowledge Development for Circular Economy Transition) project. This project aims to create and disseminate knowledge about sustainability and the circular economy among various stakeholders including the students through Digi-SUSTEACH centres. These centres help build skills for a greener and smarter future.
Final Thoughts
India has a great opportunity to lead the world in sustainable living. By combining traditional habits with modern technology and education, we can build a circular economy that protects nature, creates jobs, and supports a better life for all. Going forward, India has started leveraging green bonds, green technology, green finance, green marketing, sustainable HRM etc to accelerate the transition. Together, these financial and technological tools will empower India to not just follow but lead the global movement toward a sustainable and circular economy.
With Indian thrust, International Solar Alliance (ISA) came into existence in year 2016. India also proposed Mission LiFE (Lifestyle for Environment) to protect and preserve the environment at the 26th session of the Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Glasgow. While the emphasis is on the entire ecosystem but the academic community has to play a pivotal role in learning, practicing and disseminating these ideas every day!