Visualising the Prospective Circular Economy

In contrast to the traditional linear economic model, which is primarily based on the 'take-make-consume-throw away' pattern, the concept of circular economy is based on the principles of sharing, leasing, reuse, repair, refurbishment, and recycling, revolving in a closed-loop, where the value focus is on products and the materials which these products contain. In simple words, it focuses on waste reduction to a minimum level. From an Indian perspective, the idea has immense potential as it could deliver numerous opportunities like less pressure on the environment, a higher level of competitiveness, better security in terms of supply of raw materials, more innovation, higher growth, and more jobs. At the same time, this shift also brings along certain challenges like financing issues, the need for key economic enablers, skill requirements, consumer behaviour and business models, and the need for multi-level governance.