Why India needs a circular economy

For over 18 months since the COVID-19 pandemic began t, the world has been continuously fighting the outbreak and its consequences. Almost 50 lakh people have lost their lives and many more have lost their livelihoods. Moreover, the economies of several nations, more particularly the developing and emerging countries like India, have been badly hit.

Even as last year’s lockdowns and the aftermath of the pandemic saw the economy slide downwards, the government of India not only started planning for its (economy’s) revival, but also the transformation from the linear ‘take, make and dispose’ model to a more circular one. 

According to figures released by the government for 2020-2021, India’s GDP (Gross Domestic Product) contracted by 7.3 percent. The impact can be gauged by the fact that between the early 1990s till the pandemic struck the country, we grew at an average of about 7 percent every year. 

While it is critical to revive the economy, the transition to a circular economy is the need of the hour.

A restorative or regenerative economy that pays equal attention to and cares equally for people, planet and profits also implies the necessity of opting for renewable resources, and simultaneously working towards the elimination of waste via a more pragmatic way of making materials, products, systems and business models. 

Although the government is working towards implementing its plans, we the people also need to think and act consciously towards this larger good.

For starters, we have to find new ways of not only making good use of the world’s limited resources, but also find newer ways to reuse them. So, besides making products that last long and recovering everything from them to recycle along the value chain, we also need to explore alternative sources of sustainable raw materials like biomass and CO2 (Carbon Dioxide) itself.

Moreover, we also need renewable energy to power a true resource-efficient country. These moves will help reduce the greenhouse emission by 44 percent, besides significantly decreasing congestion and pollution. 

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That’s where collaboration plays a significant role in this transformation of linear economy into circular.

Building a resident and low carbon economic recovery can’t be possible without the joint efforts of government, industries and people working in close association with each other. 

At the same time, it needs to be ensured that growth is distributed evenly across all industries, from manufacturing, agriculture and health to telecommunications and information technology. While a sizable population of India relies on agriculture, we also need to maintain equilibrium by focussing as much on education, healthcare, digital and new-age technologies. 

Given the pivotal role technology in the battle against the pandemic, its part in building a circular economy is as crucial. Not to forget, technology plays a huge part in bridging the divide between urban and rural India.

Government initiatives like direct benefits and money transfers to citizens through digitisation of banks under the Jan Dhan scheme post the launch of Digital India is an apt example of how technology ensured those in rural areas don’t miss out on the benefits due to them. 

New-age technology like 5G, Artificial Intelligence (AI),  robotics, blockchain, cloud, machine learning among others can be applied to services across sectors.

So, even as we take technology to everyone across age groups, strata in rural and urban areas, industries and businesses also need to nurture a growth mindset keeping in mind sustainable goals like climate change, renewable energy solutions and widespread use of digital platforms. 

According to estimates, adopting a circular economy will bring India annual benefits to a tune of Rs 40 lakh crores by 2050. 

Another key pillar in building the circular economy is by being vocal for local. One example that comes to mind about the Atmanirbhar Bharat initiative of the Indian government is the mass production of PPE (personal protection equipment) kits and masks, within a few weeks of the nationwide lockdown last year.

From being a country that didn’t have adequate PPE kits etc for its frontline workers, India not only became a big manufacturer, but was also able to supply other countries in need of them. Moreover, the indigenous making of PPE kits and masks also provided employment to a huge number of people across the country. 

Considering that plastic contributes to a considerable amount of waste to the environment, industries are working towards alternative raw materials, recycling products and reducing wastage.

For this purpose, the government has not only been formulating policies and projects to drive the country towards a circular economy, but also notified various rules like Plastic Waste Management Rules, Construction and Demolition Waste Management Rules, Metals Recycling Policy among several others. 

Interestingly, circular economy is not a new-age idea. In our childhood, we’re taught to be cautious about using our resources, spending wisely and saving for the future. So, transitioning from a linear economy to a circular one is like coming full circle for us.