India’s Circular Economy Aims For Big Growth, Less Waste

The circular economy is not just an alternative; it is essential. It marks a fundamental shift in how we produce, consume, and manage materials, said Union Minister for Environment, Forest, and Climate Change, Bhupender Yadav, while addressing the 'Waste Recycling and Climate Change 2025' conference recently.

A circular economy preserves raw materials and fosters innovation in industries, enhances economic competitiveness, and creates jobs. By the year 2050 India’s circular economy is expected to have a market value of $2 trillion and create 10 million jobs. 

The newly introduced EPR framework is one of the mandates meant to propel India into a sustainable circular economy. Municipal waste is estimated to reach 436 million tonnes by 2050. As such, the Extended Producer Responsibility (EPR) framework introduced by the government goes beyond regulation—it is the most progressive step toward waste management, efficient resource use, and a greener future.

ResponsibleUs spoke with industry leaders to understand how new Extended Producer Responsibility policies can strengthen the circular economy and resource management, making them key pillars of waste management in India.

"EPR is the backbone of any environmentally friendly and sustainable waste management system, driving industrial participation and accountability," said Abhishek Agashe, Co-founder and CEO of Elima. "In all ways formalizing waste recycling and making all stakeholders accountable strengthen India's commitment to resource efficiency, industry participation, and climate resilience."

"This well-launched EPR system can generate at least 15 million green jobs by 2047 and waste more than $500 billion," Agashe said. He further said, "Much of that will be visible when the EPR digital marketplaces open accessibility keys-prioritizing transparency, operational efficiency, and equitable market access."

However, he added that independent strong policy interventions will prompt investments on recycling infrastructure, skill development, and localized material recovery systems. "At Elima, we intend to champion this transformation by providing tailor-made EPR solutions that empower businesses for seamless compliance while providing an actual impact on the environment." 

How Resource Efficiency Can Drive Economic Growth for India
Sustainable economic growth is the core expectation under the 2047 agenda, which aims to elevate India to the status of a developed nation. Monika Chopra, Associate Professor-Finance and Accounting at IMI New Delhi pointed out that material extraction in the country is at an astounding rate of 251% more than the global average while 20% of goods are recycled in India compared to Europe's 70%.

Resource efficiency can help India, through reduced demand for virgin resources, cut down costs, and lesser dependence on nonrenewable and rare earth materials, thus propelling its competitiveness in sectors like automobiles, textiles, and electronics. "Sustainable urbanization through circular construction, using recycled materials in roads, housing, and infrastructure, will not only create paid opportunities but also fortify India's standing in the global market," said Chopra.

Ayush Patodia, Associate Vice President, Avalon Consulting, added that NITI Aayog estimates that resource efficiency could contribute about $500 billion to India's GDP by 2030. Recycling can lower raw material costs in industries like steel, aluminum, and electronics by 30 to 40%, thus making them competitive. "Resource optimization can further help in reducing dependence on fossil fuels, considering that India imports crude oil worth $160 billion every year," he said. 

Key Policies To Create $2 Trillion Circular Economy
To have a $2 trillion circular economy by 2050, there is a need for strong regulatory policies, tax incentives, infrastructure development, and public-private partnerships. As Patodia pointed out, while there is no obligation, India can draw upon global best practices.

The National Circular Economy Policy will adopt practices from the Circular Economy Promotion Law formulated by China in 2009 and establish resource efficiency and closed-loop supply chains. 

Strengthened EPR laws, with a history modeled by the EU's WEEE Directive, can key e-waste recycling. 
Resource efficiency goals implemented for specific sectors, using Japan's Sound Material-Cycle Society Plan as an example, could work to strengthen sustainability in sectors such as steel, cement, and electronics.
Business incentives, such as tax deductions and R&D grants based on South Korea's Green Growth Strategy, will speed up investments for circular economy activities. 

Financial incentives will also play a large role. "Subsidies for advanced recycling technologies and waste-to-energy projects can drive innovation, while global partnerships can facilitate technology transfers," added Patodia. He pointed towards the example of Germany's Circular Economy Act, and India could further explore with the EU Circular Bioeconomy Fund for financing the circular way.

Creation of Employment: Circular Economy Employment Potential
Among circularity aspects, job creation looks rather promising, especially in sectors like waste management, secondary manufacturing, and reverse logistics. A 2023 NITI Aayog report states that the circular economy may generate around 10 million jobs, while formalization of the informal waste sector could generate further 2-3 million jobs in India.

Patodia stated that aside from electronics, textiles, and packaging, the repair and remanufacturing will stand to gain the most. "Extending product life by repairing and restoring not only reduces raw material demand but also creates thousands of skilled jobs."

Formalising the informal waste sector, according to a report by TERI in 2023, could result in India reducing its dependence on imported raw material by almost 30%. Eco-design, sustainable materials, and resource efficiency will create jobs through innovation, while measures such as EPR, the Swachh Bharat Mission, and the National Resource Efficiency Policy will back such a transition.

Agashe further stated: "By establishing circular economy principles, India has the potential to lead the global transition toward a zero-waste future." "This policy is not just about meeting mandates—it's about shaping a sustainable and self-sufficient economy for generations to come."

Road Ahead-Sustainable and Circular India
Strong policies, industry synergies, and financial incentives will be required to fulfill India's circular economy vision and promise. Experts have reached a consensus that waste recycling and resource efficiency, once the need of the hour in environmental debate, have now become viable pathways to prosperity, employment, and sustainability.

With proper political interventions, digital solutions, and industry engagement, India could stop waste, drop emissions, and step into the forefront of circular economies in the world-build a foundation for developing sustainable and prosperous valley.

With the right policy interventions, digital solutions, and industry participation, India can reduce waste, cut emissions, and position itself as a global leader in the circular economy—laying the foundation for a sustainable, developed nation by 2047.

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