Circular Economy

3 Dec 2025

Circular Economy

Finland to organise circular economy roadshows across major Indian cities in 2026, coinciding with India’s hosting of the World Circular Economy Forum (WCEF) in October 2026.

About Circular Economy

Circular Economy

  • A Circular Economy is an economic model that aims to minimize waste and maximize resource efficiency by keeping products, materials, and resources in use for as long as possible.
  • It replaces the traditional linear economy (take–make–dispose) with a regenerative system.
  • Core Principles: 
    • Design Out Waste: Products are designed to reduce waste, pollution, and environmental harm.
    • Keep Materials in Use: Reuse, repair, refurbish, remanufacture, and recycle materials to extend their life cycle.
    • Regenerate Natural Systems: Restore ecosystems through sustainable extraction, composting, and renewable energy use.

India’s Circular Economy Landscape

  • India’s circular economy is projected to reach $2 trillion and create 10 million jobs by 2050 (Government of India).
  • Current policy focus remains on waste management and recycling, but opportunities extend far beyond.

Benefits of the Circular Economy

  • Environmental Benefits
    • Reduced Natural Resource Extraction: Extending the lifespan of products helps conserve finite natural resources. (SDG 12)
    • Lower Greenhouse Gas Emissions: Circular practices decrease carbon emissions and support global climate commitments. 
    • Minimised Waste Generation: Reuse and recycling reduce the volume of waste ending up in landfills and the environment. 
  • Economic Benefits:
    • Cost Efficiency: Optimised use of materials and energy leads to savings for both producers and consumers.
    • Employment Generation: Activities such as repair, refurbishing, recycling, and remanufacturing create new job opportunities.
    • Diversified Markets: Innovative models like leasing, sharing, and product-as-a-service create fresh avenues for business growth.
  • Social Benefits
    • Greater Consumer Options: Consumers can access refurbished or rented products at lower costs, increasing affordability.
    • Improved Quality of Life: Reduced pollution and better waste management contribute to healthier living environments.
    • Stronger Community Engagement: Local repair and reuse initiatives encourage community participation and shared responsibility.

India’s Key Initiatives Towards the Circular Economy

  • Swachh Bharat Mission (SBM): The Mission directly supports the Blue Economy by reducing land-based pollution, which is a major source of marine and coastal degradation.
  • GOBAR-Dhan Scheme: The GOBAR-Dhan (Galvanising Organic Bio-Agro Resources – Dhan) scheme promotes waste-to-wealth through biogas and bio-slurry generation from rural organic waste.
    • By converting livestock dung and biodegradable waste into clean energy and organic fertilizers, it reduces waste runoff into water bodies.
  • E-Waste Management Rules, 2022: The E-Waste Rules introduce Extended Producer Responsibility (EPR) and stricter recycling norms to prevent toxic electronic waste from contaminating soil and water.
  • Mission LiFE (Lifestyle for Environment): It encourages individuals and communities to adopt environment-friendly lifestyles, including reduced plastic use, responsible consumption, and sustainable resource use.

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About World Circular Economy Forum (WCEF)

  • Global Platform: The World Circular Economy Forum (WCEF) serves as a major international platform that brings together governments, businesses, civil society organisations, academic institutions, and experts to accelerate the global shift toward a circular economy.
  • Leadership: WCEF is a global initiative led by Finland and organised by the Finnish Innovation Fund Sitra.
  • Historical Background: The first edition of the World Circular Economy Forum was held in 2017 in Helsinki 

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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