India’s Circular Economy Poised for Massive Growth, Reaching $2 Trillion by 2050

India’s circular economy is on track to reach a staggering $2 trillion valuation by 2050, creating over 10 million jobs in the process. This optimistic projection comes from the Confederation of Indian Industry (CII) in its groundbreaking ‘National Circular Economy Framework’ (NCEF).

The framework proposes the establishment of a dedicated agency, the National Circular Economy Authority (NCEA). This entity would oversee the implementation of the national strategy, coordinate efforts across industries and agencies, and drive regulatory reforms.

The NCEF outlines a compelling vision for India’s future:

• Reduced Reliance on Imports: NCEF aims to lessen dependence on imported resources, fostering greater self-sufficiency.
• Decoupling Growth from Resource Consumption: By promoting resource reuse and efficiency, NCEF seeks to decouple economic growth from environmental degradation.
• Pollution Reduction and Resource Security: NCEF’s focus on waste management and resource optimization promises cleaner air, water, and land, while ensuring resource security.
• Enhanced Competitiveness and Investment: Businesses adopting circular principles are expected to enjoy lower costs and greater competitiveness, attracting increased investment.

Specific areas identified for action in the roadmap include:

• Plastics
• Construction materials
• Electronic goods
• Mixed municipal waste (dry and wet)

States like Maharashtra, Gujarat, Tamil Nadu, and Karnataka are identified as having significant potential for large-scale circular economy initiatives.

Masood Mallick, Chairman of the CII Task Force on Waste to Worth 2023, emphasized the urgency of action:

• “There is no more space for waste. We cannot create anymore landfills. There is a need for more recycling.”
• “India’s circularity score is below 10 percent. We need to achieve more.”

Mallick highlights the current recycling and recovery rates:

• Formal recycling rate: 10-20%
• Formal recovery rate: 80-95%

He underscores the need to address transitional challenges:

• Lack of awareness
• Infrastructure and investment gaps
• Regulatory barriers