Circular Economy

The NITI Aayog launched three thematic reports on enhancing the circular economy in End-of-Life Vehicles (ELVs), waste tyres, e-waste, and lithium-ion batteries at the International Material Recycling Conference organised by the Material Recycling Association of India in Jaipur.

These reports highlight the growing waste challenge arising from rapid urbanisation, expansion of electric vehicles, and increasing digitalisation, and propose policy pathways to strengthen India’s circular economy ecosystem.

Key Highlights of NITI Aayog Reports

1. End-of-Life Vehicles (ELVs)

Rapid urbanisation and increasing vehicle ownership are leading to a sharp rise in ageing vehicles in India. The growth of electric vehicles (EVs) is further expected to accelerate the generation of ELVs in the coming years.

• EV sales increased from 50,000 in 2016 to about 2.08 million in 2024, and the government aims to achieve 30% EV share in total vehicle sales by 2030.

• The number of End-of-Life Vehicles is projected to increase from 23 million in 2025 to around 50 million by 2030.

• However, the circular economy potential is limited due to insufficient Automated Testing Stations (ATS) and Registered Vehicle Scrapping Facilities (RVSFs).

• The weak financial viability of scrappage facilities, procedural delays, and low consumer awareness continue to encourage informal dismantling of vehicles.

2. Circular Economy of Waste Tyres

Increasing vehicle ownership and EV adoption are also driving a surge in End-of-Life Tyres (ELTs).

• The tyre recycling ecosystem remains fragmented and largely dominated by informal recyclers.

• There is poor traceability and absence of strong quality standards in tyre recycling.

• High-value recycling opportunities, such as production of Recovered Carbon Black (rCB) and tyre retreading, remain underutilised.

• Much of the tyre waste is downcycled into low-value products, resulting in lost economic opportunities and missed potential for import substitution and green job creation.

3. E-Waste and Lithium-Ion Batteries

The rapid expansion of digital technologies and clean energy systems is generating large quantities of electronic waste and lithium-ion battery waste.

• India’s e-waste generation is expected to increase from 6.19 million metric tonnes (MMT) in 2024 to about 14 MMT by 2030.

• Demand for lithium-ion batteries is projected to grow from 29 GWh in 2025 to 248 GWh by 2035, mainly due to EV adoption and energy storage requirements.

• Recycling activities are largely informal and involve unsafe processes, which create environmental pollution and health risks.

• The current Extended Producer Responsibility (EPR) framework covers only a limited number of metals, and weak monitoring enables fake recyclers and fraudulent certifications.

• Inefficient recycling increases India’s dependence on imported critical minerals, affecting long-term resource security.

Circular Economy: Concept

A Circular Economy is an economic model aimed at minimising waste and maximising the reuse of resources. Unlike the linear economy (take–make–dispose), it focuses on extending the lifecycle of materials.

The circular economy is based on the 6R principles:

• Reduce

• Reuse

• Recycle

• Refurbish

• Recover

• Repair

This approach ensures efficient resource use, reduced waste generation, and sustainable production systems.

Importance of Circular Economy for India

1. Resource Constraints

India has 18% of the global population but only about 7% of mineral resources and around 4% of freshwater resources. Therefore, a linear consumption model is economically unsustainable, and circular practices can reduce dependence on imported raw materials.

2. Rapid Growth of Waste

India generates around 1.68 lakh tonnes of municipal solid waste per day, which may reach 436 million tonnes annually by 2050 if current trends continue.

3. Low Waste Processing Levels

Only 55–60% of waste is processed, while the rest becomes residual waste that is dumped or landfilled, resulting in the loss of valuable recyclable materials.

4. Land and Urban Challenges

India has over 2,100 dumpsites occupying more than 10,000 hectares of urban land, which could be reclaimed through circular waste management practices.

5. Climate Change Impact

Greenhouse gas emissions from municipal waste are projected to reach around 41 million tonnes of CO₂ equivalent by 2030, largely due to methane emissions from landfills.

6. Employment Generation

Circular economy activities such as recycling, repair services, and bio-methanation can generate significant employment opportunities, particularly in the informal sector.

India’s Initiatives Supporting Circular Economy

India has undertaken several initiatives to promote circular economic practices, including:

• Swachh Bharat Mission

• Solid Waste Management Rules, 2016

• Plastic Waste Management Rules 2022

• Ban on Single-Use Plastics

• Swachh Survekshan

• E-Waste Management Rules 2022

• Mission LiFE

India is also a member of the Global Alliance on Circular Economy and Resource Efficiency (GACERE), which promotes global cooperation for circular economic practices.

Measures to Strengthen Circular Economy in Mobility

1. End-of-Life Vehicles

• Expand Automated Testing Stations and Registered Vehicle Scrapping Facilities across the country.

• Link vehicle deregistration with a valid Certificate of Deposit (CoD) to ensure vehicles are scrapped in authorised facilities.

• Integrate informal dismantlers into the formal sector through training and regulatory support.

2. Waste Tyres

• Restrict the use of Tyre Pyrolysis Oil (TPO) to approved industrial or refinery uses.

• Establish national standards for recovered Carbon Black and TPO.

• Formalise informal recyclers through financial assistance and simplified registration mechanisms.

3. E-Waste and Lithium-Ion Batteries

• Expand Extended Producer Responsibility (EPR) to include additional high-value and critical minerals.

• Update Bureau of Indian Standards (BIS) regulations for lithium-ion battery composition and recycling standards.

• Develop modern shared recycling facilities and strengthen collection systems through urban local bodies and PPP models.

Conclusion

The reports by NITI Aayog highlight that India’s waste challenge is not merely a sanitation issue but also a resource security, climate, and economic concern. By adopting a robust circular economy framework, India can transform waste into a valuable resource, generate green employment, reduce import dependence, and strengthen environmental sustainability, thereby aligning its development strategy with global sustainability goals.