India’s transition to circular economy vital for sustainability

India is embracing a circular economy to achieve self-reliance and
sustainability, with the government recognizing the importance of optimizing
resource utilization in the context of a growing population and rapid
urbanization.

The circular economy model promotes practices such as sharing, leasing,
reusing, repairing, refurbishing, and recycling to extend the life of materials and
reduce waste.

With global material consumption projected to double by 2050, there’s growing
awareness of the environmental and economic impacts associated with resource
management. These impacts can adversely affect human health, ecosystems,
and overall economic stability.

A circular economy offers numerous benefits across environmental, economic,
and social domains, including long-term environmental objectives, economic
competitiveness, job creation, and overall growth.

However, there are challenges on the path to a circular economy. India remains
a significant importer of waste and scrap, despite having the potential to recycle
and reuse materials. The country’s domestic scrap recycling rate is only 20
percent, far below the global benchmark of 82 percent, indicating untapped
potential.

Notably, the copper industry is a key focus for the circular economy transition.
India’s increasing copper consumption has outpaced production, leading to
record-high imports and resource dependence. The reliance on a limited number
of countries for copper supply poses a supply risk. To address these challenges,
India can incentivise responsible scrap usage and promote the recycling sector’s
formalisation.