‘India can add value to growth by adopting circular economy’

INDIA CAN add value to its growth by resorting to a circular economy essentiating maximum utility of products, components and materials, a study by a United Nations body said on Monday.

Circular economy refers to a continuous cycle of preserving and enhancing natural capital, optimising resource yields, while minimising risks by managing infinite stocks and renewable flows.

“A circular economy development path in India could create annual value of Rs 14 lakh crore ($218 billion) in 2030 and Rs 40 lakh crore ($624 billion) in 2050 compared with the current development scenario,” said the report ‘The case for a circular economy in India’ which was released here on Monday.

The report is authored by the Ellen Macarthur Foundation in cooperation with Indian government, businesses and United Nations Conference on Trade and Development (UNCTAD).

The report says businesses in India can save on material cost and increase their profits by adopting circular economy approaches.

“Shifting from selling cars to providing vehicles as a services can create new revenue streams for the automotive industry and capture the value of more intensive use of each car,” according to the report.

Noting recent initiatives by businesses, government bodies and non-profits in India to align with circular economy, it says Indian habits are deeply ingrained with circularity with high rates of utilisation and repair of vehicles and recycling to material post-use.

The Indian masses can also benefit as products and services will be cheaper when things are used to maximum and recycled, it said.

“The lower costs could also help India implement such initiatives as Pradhan Mantri Awas Yojana and the National Food Security Mission.”

To fulfill the need of cities and dwelling in view of expanding population, the report finds renewable and recycled materials and modular construction methods can minimise waste and reduce construction costs.