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help businesses implement new approach- While some sectors (e.g. the material ex- models provide would enhance the util-
es and capture new profit opportunities. traction industry) would expect reduced ity, or benefit experienced by customers.
activities, overall more activity would Choice increases as producers provide
Material cost savings and reduced expo- happen across the economy, boosting eco- systems that enable tailoring products or
sure to resource price volatility: A circular nomic growth. services to better meet customer needs.
economy would significantly lower costs For example, applying circular economy
for businesses related to the use of virgin Benefits for citizens principles in mobility would give cus-
materials. Less material use would also re- 1. Lower cost for products and services. tomers more vehicle options, without
duce their exposure to volatile raw materi- In the circular economy scenario, cash- increasing the number of vehicles on the
als prices and strengthen resilience. out cost in the three focus areas would road.
be Rs14 lakh crore ($218 billion, 11 per-
Economic growth: As mentioned earlier, cent of India’s GDP) lower in 2030 and 3. Reduced negative externalities, e.g.
circular economy practices are making Rs40 lakh crore ($624 billion, 30 percent congestion, pollution. The analysis sug-
more productive use of material inputs of India’s GDP) lower in 2050, compared gested beneficial impact from applying
(including looping of products, compo- with the current scenario. circular economy approaches to address
nents, and materials) and increasing rev- 2. Greater utility and choice. The ad- issues like congestion, pollution, and ill-
enue from emerging circular activities. ditional choice or quality that circular health.

CIRCULAR ECONOMY’S OPPORTUNITIES IN INDIA

1. Cities and construction reduce construction costs. Buildings can ly-enabled asset and knowledge-sharing
As India invests in long-term infrastructure be designed to be adaptable to changing systems) could increase yield while sig-
to improve citizens’ quality of life, for ex- needs and contribute to the regenerative nificantly decreasing requirements for re-
ample, through the Smart Cities Mission, it urban ecosystem during their use phase sources such as water, synthetic fertilisers
could incorporate circular economy prin- (energy generation, connection to nutrient and pesticides.
ciples into the design of the infrastructure cycling systems, etc.). Reducing food waste across the supply
needed to provide water, sanitation, and chain could make the Indian food system
waste services at scale, creating effective 2. Food and agriculture even more effective. This would require
urban nutrient and material cycles. More India can adopt a regenerative, restor- optimising production and digitising
systemic planning of city spaces, integrated ative agricultural system that combines food supply chains to match supply and
with circular mobility solutions, can con- modern technology with traditional demand more easily. Urban and peri-ur-
tribute to higher air quality, lower conges- practices to meet India’s growing food ban farming can bring food production
tion, and reduced urban sprawl. Flexible demand. There is an urgent need for an closer to consumption, reducing food
use of buildings and urban spaces, enabled agricultural system framework which waste and transportation requirements.
by digital applications, can increase utilisa- retains natural capital, boosts econom- Composting and an aerobically digesting
tions rates, getting more value out of the ic and ecological resilience, and delivers food waste with no other valuable use
same assets. Higher efficiency and lower a stable supply of fresh, healthy, and di- and post-consumption nutrients (those
overall building and infrastructure costs verse food to India’s growing population contained in human excreta) allows res-
could also help meet the housing needs besides closing the gap in nutrient loops. toration of nutrients to the soil and pro-
of the urban poor without compromising Leveraging the current small-farm struc- duction of energy.
safety and quality. ture, India could create large-scale net-
Circular economy principles can con- works of farmers, interconnected and 3. Mobility and vehicle
tribute to this construction activity in ways symbiotic in their practices and com- manufacturing
that create economic value and decou- mitted to regenerative approaches. Com- Circular economy principles can con-
ple development from the use of virgin, bining local knowledge and traditional tribute to a mobility system that would
non-renewable resources. Renewable and methods (like working with a large va- meet the growing needs of the Indian
recycled materials and modular construc- riety of species) with modern technol- population, especially in cities, while
tion methods can minimise waste and ogy (like precision farming and digital- limiting negative externalities, such as

AUGUST 2019 l INDIAN ENGINEERING EXPORTS l 27