Executive Summary

India’s ambition to become a five trillion-dollar economy relies on expanded manufacturing and services, both of which are traditionally resource-intensive. The practice of a circular economy (CE) aims to maximise the value and utility of finite natural resources by keeping products and materials in use for as long as possible. The primary goals of circularity are twofold: minimising raw material extraction and minimising waste sent to landfills. While much work in India currently focuses on recycling, there is significant potential in upstream strategies such as design for end-of-life, product life extension, and the adoption of product-as-a-service models.

Call to action

The report outlines four critical actions for industry leaders and policymakers. Firstly, there is a need to build collaborative, sectoral platforms to address product life cycle concerns, including standardising compositions to ease refurbishment and recycling. Secondly, organisations must revisit product and service design to reduce virgin material consumption. Thirdly, alternate business models such as shared platforms and product-as-a-service should be explored. Finally, procurement guidelines should be reviewed to assess the feasibility of using secondary inputs derived from recycled materials.

Chapter 1: Circular economy landscape in India

The policy landscape in India has evolved from the National Environment Policy 2006 to more targeted regulations like the 2016 waste management rules, which established the foundation for Extended Producer Responsibility (EPR). Since then, EPR schemes have been notified for plastic packaging, batteries, e-waste, tyres, and used oil. NITI Aayog has played a central role by constituting 11 committees for focus areas, including lithium-ion batteries and end-of-life vehicles, to accelerate the transition to a circular economy.

The informal sector remains a vital component of this landscape, managing over 90% of collection volumes and 70% of recycling in the electronics sector. Research in this field has seen a twentyfold increase between 2019 and 2024, focusing on themes such as waste-to-energy and resource recovery. However, small and medium enterprises (MSMEs) often find it difficult to make the large upfront investments required for new technologies, necessitating better support and formalisation strategies.

Chapter 2: Case studies of the practice of circularity principles in India

Three large-scale case studies illustrate the practical application of circular principles. Siemens redesigned its NXAIR switchgear to achieve standardisation and material efficiency, extending product lifespan from an average of 20–25 years to 30 years. Through its 3R model (repair, refurbish, retrofit/recycle), Siemens refurbished 148 panels in eastern India, extending their operational life by 10-15 years. Their SF6 recovery initiative purified gas for reuse and recycled 95% of segregated metals, converting environmental liabilities into valuable resources.

Tata Steel addressed the fragmented ferrous scrap market by establishing a 0.5 million tonne recycling plant in Rohtak, Haryana. They launched FerroHaat™, a digital scrap sourcing platform, to provide transparency and quality control. This initiative not only reduces dependence on virgin iron ore but also improves working conditions for informal scrap dealers (kabadiwalas) through training and access to formal markets.

Volvo Construction Equipment (Volvo CE) targets net-zero emissions by 2040 and has localised global remanufacturing strategies. Its dealer-led remanufacturing workshops achieve up to 85% material reuse and 80% lower energy consumption compared to new production. Their Equipment-as-a-Service (EaaS) model increases machine utilisation by up to 1.8 times, allowing customers to pay for uptime rather than ownership.

Additional highlights include Tata Motors’ ‘Prolife’ programme, which reconditions engine blocks and aggregates, and Mahindra Lifespaces, which replaces up to 60% of cement with industrial by-products like ground granulated blast furnace slag (GGBS). In the aluminium sector, Novelis operates closed-loop recycling that uses 95% less energy than primary production, while Philips India provides refurbished medical imaging systems at a 25% cost saving to healthcare providers.

Chapter 3: Way forward

Accelerating the transition requires formalising informal sector actors through licensing and certification. National standards for product design, reuse, and scrap quality must be developed to ensure safety and reliability. Financial incentives, such as carbon credits and tax benefits, can encourage companies to adopt circular practices. Furthermore, the report suggests creating digital marketplaces for reusable materials to improve transparency and efficiency across the supply chain, supported by cross-ministry coordination to align industrial and sustainability policies.