Circular Economy: Reflections from 2024 and Predictions for 2025

As the first week of 2025 unfolds, India stands at a pivotal crossroads in its journey toward sustainability and the adoption of a circular economy. The past year, 2024, has been a mix of challenges and breakthroughs, reminding us of the pressing need to rethink how we produce, consume, and manage resources. With India’s growing role on the global stage, the question arises: can 2025 become a defining year for India’s circular economy movement? 

Let's explore with TICE.

The circular economy—designed to reduce waste, maximize resource efficiency, and regenerate natural ecosystems—is critical to addressing the challenges of resource depletion and environmental degradation. While India has made significant strides, the gap between ambitious goals and ground-level implementation is evident.

With initiatives like the Swachh Bharat Abhiyan and Mission LiFE (Lifestyle for Environment) spearheaded by the government, there is growing momentum. However, as experts from NITI Aayog and leading sustainability forums highlight, the transition to a circular economy requires systemic changes across industries and stronger public-private partnerships.

2024: Reflections on India's Circular Economy Journey

The Circularity Challenge

In 2024, India faced a growing waste management crisis despite various initiatives to promote recycling and reduce landfill dependence. According to a NITI Aayog report, India’s material circularity rate is below the global average, hovering around 9.1%. This points to the need for immediate interventions in sectors such as plastics, textiles, and e-waste.

India’s urban centers, including Delhi, Mumbai, and Bengaluru, continue to generate massive amounts of waste, much of which is mismanaged. However, several cities like Indore and Mysuru have emerged as shining examples of effective waste management and recycling practices.

Read More: What is the Role of Circular Economy in Making Sustainable Bharat?

Corporate Commitments Under Scrutiny

Some Indian corporations have shown leadership in sustainability, but many are struggling to meet their ambitious goals:

• Reliance Industries: While launching initiatives to promote the use of recycled plastics in packaging, Reliance missed its target of reducing virgin plastic usage by 25% in 2024.
• Tata Steel: Despite its commitment to reducing carbon emissions, the company faced challenges in scaling its scrap steel recycling initiatives.
• Flipkart and Amazon India: Both companies made progress in adopting sustainable packaging, but their overall waste reduction targets remain a work in progress.

Emerging Solutions from Indian Startups

India’s thriving startup ecosystem continues to innovate in the sustainability space. Some of the standout examples from 2024 include:

• Loopworm: Revolutionizing food waste management by converting it into high-value proteins and organic fertilizers.
• Phool.co: Upcycling temple flowers into eco-friendly incense and packaging materials.
• Banyan Nation: Driving India’s circular plastics movement with a focus on high-quality recycled polymers.

These startups not only highlight the potential for sustainable solutions but also inspire the next generation of entrepreneurs to tackle environmental challenges head-on.

Read More: Can India's GenZ Entrepreneurs Solve the Country's Biggest Challenges?

What to Expect in 2025: Opportunities and Challenges

As 2025 begins, India’s circular economy is poised for growth, backed by government initiatives, consumer awareness, and private sector innovation. Key areas to watch this year include:

Scaling Innovations

Indian startups and MSMEs are expected to play a crucial role in scaling circular solutions. Initiatives like the Startup India Mission and NSRCEL’s incubation programs for women entrepreneurs are empowering innovators to address waste management, sustainable agriculture, and renewable energy challenges.

Strengthening Government Policies

The Indian government has been proactive in introducing policies to promote sustainability. Programs like the Extended Producer Responsibility (EPR) framework for e-waste and plastics are gaining traction. However, there is a need for stricter enforcement and penalties for non-compliance.

The National Resource Efficiency Policy and state-level waste management initiatives will play a critical role in achieving India’s circularity goals in 2025.

Consumer Awareness and Behavioral Change

Indian consumers are increasingly aware of sustainability issues. According to a report by the Centre for Science and Environment (CSE), over 68% of urban consumers are willing to adopt eco-friendly alternatives, provided they are affordable. This growing awareness is expected to drive demand for sustainable products and services.

Focus on Key Sectors

1. Textiles: With India being a global hub for apparel production, adopting circularity in textiles is crucial. Companies like Arvind Limited and startups like Oorja Development Solutions are leading the charge.
2. Agriculture: Promoting organic farming and using agricultural waste to create bio-based products is gaining momentum.
3. Construction: Circular practices such as recycling construction debris and promoting green buildings are gaining acceptance in urban planning.

Voices of Change: Expert Opinions on 2025

“India’s transition to a circular economy requires robust partnerships between the government, private sector, and citizens. With the right mix of policy and innovation, we can lead the way globally,” said a senior representative at NITI Aayog during the Indian Circular Economy Forum 2024.

Read More: JSW Is Leading the Way in Sustainability & Circular Economy! Check How

The journey toward a circular economy in India is a collective endeavor that demands action at every level—government, businesses, and individuals. While the challenges are significant, the opportunities to create a sustainable and prosperous future are equally immense.

As 2025 unfolds, it is crucial to leverage India’s strengths: a vibrant startup ecosystem, a proactive government, and an increasingly aware population. The world is watching, and India has the potential to lead by example in the circular economy movement.

By the end of this year, will India have taken decisive steps to close the circularity gap? Only time will tell.

Join Our Thriving Entrepreneurial Community

Twitter: @TiceNews | LinkedIn: TICE News | Instagram: @tice.news | Google: Leave a Review