The importance of a circular economy in reducing India's carbon emissions through responsible consumption and sustainable resource management was highlighted at COP27.

A circular economy calls for a production model that aims to retain the most value in order to create a system that encourages sustainability, longevity, reuse, and recycling while minimizing waste. Even though India has always had a culture of recycling and reusing things, the country's rapid economic growth, growing population, impact of climate change, and rising pollution in the environment now make it more important to adopt a circular economy.

The budget for the years 2022 and 23 acknowledged the significance of sustainable growth. The government created the Battery Waste Management Rules 2022, the Plastic Waste Management Rules as amended in 2022, and the e-Waste Management Rules 2022 in accordance with a circular economy. By establishing target waste disposal standards for stakeholders like manufacturers, producers, importers, and bulk consumers and allowing transactions between stakeholders for extended producer responsibility certificates, these regulations support the circular model of waste utilization.

In India, a more formal transition to the circular economy regime will be made possible by this action. In addition, the Budget acknowledges the action plans developed for ten different areas, such as scrap metal, municipal solid waste, lithium-ion batteries, old cars, and electronic waste. Reusing secondary materials recovered from waste, the implementation of an extended producer responsibility framework, and tax rebates are all emphasized in these plans.

However, this is insufficient.

Nevertheless, despite the Government's policy efforts, there has been little progress. India's circular economy mission doesn't have a clear end goal, and the policies aren't being put into practice properly, which is one of the main causes. Due to limitations in the supply chain, a lack of investment incentives, complicated recycling procedures, and a lack of information to encourage participation in reusing, recycling, and remanufacturing processes, industry is also reluctant to adopt the circular economy model. The fact that efforts are made at the very end of value chains, resulting in outcomes that are subpar for the environment and economy, is yet another glaring concern in this situation. Legislative mandates for the acquisition of recycled or secondary raw materials in the early stages of the production cycle, as well as the development of unified legislation addressing the circular economy from a regulatory perspective, could help overcome these limitations. Additionally, a simplified circular economy reporting framework, clarification of the trading mechanism for extended producer responsibility certificates, and fiscal incentives for businesses to complete the supply chain will all be beneficial. In order to reap the benefits of the circular economy, the government's initiatives must be accompanied by actions that can be carried out with industry collaboration.

Businesses will be more likely to adopt the circular model of production if they are given confidence by the government and relevant implementation strategies.